When a customer wants something you do not have in stock, you have two options: lose the sale or keep the commitment with a back order. When you want to fulfil an order without holding the stock yourself, drop shipment lets your supplier ship directly to your customer.
A back order lets you accept a customer order for an item that is currently out of stock, with the commitment to fulfil it when the next shipment arrives. The customer is informed of the expected date, the order is held in the pipeline, and when you receive the stock, Nexlymate links the incoming inventory to the waiting back orders automatically.
A drop shipment bypasses your warehouse entirely. The customer places an order with you, you place a corresponding purchase order with your supplier, and the supplier ships directly to your customer. You never physically handle the goods — but you manage the order, the customer relationship, and the margin.
Back orders work best for items you regularly stock but have temporarily run out of, where the next delivery is imminent. Drop shipments work best for items you do not hold at all, for special orders, or for low-volume items where holding your own stock does not make sense. Both options let you keep the customer rather than losing the sale.
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