Manage Backorders & Oversell Policies

Backorders are orders that MasonHub cannot fulfill because there isn’t enough inventory in stock and currently available. Oversell Policies create virtual units of inventory that enable backorders when sold.

Benefits

• Continue selling when you’re out-of-stock and have more inventory on its way to MasonHub.
• Keep selling while you transfer inventory from your current 3PL to be managed by MasonHub.
• Generate pre-sale buzz and take orders before a new product launches. 

Considerations

• You will need to configure which SKUs you want to go into backorder in the MasonHub Order Management System (OMS) by creating an Oversell Policy. This sets the total number allotted for oversell and the time period to accept backorders for each SKU.
• MasonHub does not allow unlimited ongoing backorders, as this leaves you open to selling more than you can produce, resulting in disappointed customers.
• We recommend you set the Oversell Policy to the number of units expected to arrive on the next Inbound Shipment you’ve created in the MasonHub OMS, with a buffer to account for potential short-ships from your vendor.

Configuring Your SKUs to Accept Backorders

You will need to create an Oversell Policy for your SKU. An Oversell Policy allows you to control the total number allotted for oversell and the time period to accept backorders for the SKU. 

Oversell Policies cannot be created on Dynamic Kit SKUs where MasonHub calculates the total available to sell based on the available quantities of its component SKUs. To create backorders for a Dynamic Kit, you will need to create Oversell Policies for each of its component SKUs.

This can be done from a few places in the OMS:

Search for the SKU from the top of any page

1. Click on the SKU to go to the SKU page
2. Click the “Create Oversell Policy” button

Navigate to Catalog > All SKUs

1. Search for the SKU
2. Click the pencil icon under the Oversellable column

You will see a New Policy form where you will enter your Oversell Limit and select the Active Duration in PST. 

Navigate to Catalog > Oversell Policies

1. Scroll down to “Create Policy”
2. From the Create Policy form, enter your Oversell Limit and select the Active Duration in PST

Once you click Create, you will see the oversellable inventory status update with the Oversell Limit you entered. This number will be added to the number available to calculate the Current Sellable total reported to your commerce system.

For example: 

• You have 0 units in available status. You create an Oversell Policy for 100 units. Your new Current Sellable total is 100.

You have 0 available units.

You create an Oversell Policy for 100 more units.

You now have 100 oversellable units, which is your Current Sellable total.

• You have 10 units in available status on another SKU and know you’ll sell out soon, but additional inventory is on its way. You create an Oversell Policy for 100 units. Your new Current Sellable total is 110.