But if most retailers had still had the toy in stock and one retailer in particular did not because of supply-chain issues or poor inventory management, then that retailer’s product shortage would be considered a stockout. This is an example of widespread, generalized product unavailability. When Disney released its hotly anticipated BB-8 droid toy to coincide with the theatrical release of Star Wars: The Force Awakens in 2015, virtually all retailers sold out of the toy immediately. It’s worth noting that there is a subtle yet important distinction between out-of-stocks and generalized product unavailability. In terms of online retail, stockouts can be even more frustrating for consumers, as there is often little to indicate whether the out-of-stock is down to a temporary technical problem or a major disruption in that retailer’s supply chain. In bricks-and-mortar stores, this usually means obvious gaps in a store’s shelves.

Stockouts can be defined as the unavailability of specific items or products at the point of purchase when the customer is ready to buy. Stockouts cost retailers an estimated $1 trillion every year, and shoppers experience stockouts as frequently as every third shopping trip in some verticals, such as consumer electronics. In this article, we’ll examine what stockouts are, what causes them, and how retailers can avoid them. They can also lead to missed opportunities to engage shoppers, lost sales and revenue, and potential damage to a retailer’s brand. Stockouts don’t just create disappointment and frustration for customers.

Stockouts, also known as out-of-stocks, are among the most frustrating experiences for online and in-store shoppers.

Yet even the most diligent customer-focused stores can still struggle with one of the biggest challenges any retailer can face-running out of stock.

The already-thin line between ecommerce and bricks-and-mortar retail has blurred even more in recent years, meaning many shopping journeys that begin with online research often end with an in-store purchase, or vice versa. In today’s increasingly competitive retail landscape, many businesses have focused on ensuring that customers get exactly what they want, when they want it, wherever they may be.

What is back stock