Backorder is an order for a product that is temporarily out of stock. When an item is on backorder, the supplier will fulfill the order once the product becomes available again. Backorders typically occur due to high demand, supply chain disruptions, or production delays. Businesses may inform customers of the expected restock date and provide options for waiting, substituting, or canceling the order. Efficient management of backorders helps maintain customer satisfaction and ensures smooth operation despite inventory challenges.