HugeNerd - 5:02 pm on Mar 31, 2009 (gmt 0)

I have to use more of my resources to handle backorders because if my vendor can't get the product I feel obligated to email my customer and tell them that we have canceled their order; even though the message on my website says their order will automatically be canceled after 4 weeks.

First, BRAVO! on the excellent customer service. I, at least, would appreciate the extra notice. Personally, I tried doing the 'email the customer when not in stock and provide a lead time' deal. I quit after about 4 months...I noticed that half of the customers were never even reading the email and contacted us when they didn't receive their product and the other half simply didn't notice/care about the delay anyway! I simply gave up. During the experiment, my BizRate, BBB, Yelp! etc. ratings never changed...not one iota...and there was no change again when I quit. No one seemed to notice or care...could just be my industry.

IMHO, always show every single product, unless discontinued and completely unavailable. I subscribe to the theory of long-tail sales -- if you leave an item up on the web long enough, someone will always purchase it, eventually. Look at iTunes -- they put everything they can get the rights to for sale and assume someone will eventually buy it. Granted, this may not be as sound a business proposition if putting new products up is a time consuming hassle or if you can't leave SKUs in your db but keep them from being live (I have mine set so that if it's really a problem, I can leave the product and SKU live but have the Buy Now button simply show a "Call for Availability" tag...if they call, that's bound to be a sale as they are interested and I get a chance to communicate in real time...).

My vote: Always show everything, even if not in stock. At least they know you carry it, then.