diff --git a/src/Controllers/Version4/Products.php b/src/Controllers/Version4/Products.php
index c137842b1f9..536d9d5a5d2 100644
--- a/src/Controllers/Version4/Products.php
+++ b/src/Controllers/Version4/Products.php
@@ -423,12 +423,12 @@ class Products extends AbstractObjectsController {
 
 			if ( $product->is_type( 'grouped' ) ) {
 				$product->set_manage_stock( false );
-				$product->set_backorders( false );
+				$product->set_backorders( 'no' );
 				$product->set_stock_quantity( '' );
 				$product->set_stock_status( $stock_status );
 			} elseif ( $product->is_type( 'external' ) ) {
 				$product->set_manage_stock( false );
-				$product->set_backorders( false );
+				$product->set_backorders( 'no' );
 				$product->set_stock_quantity( '' );
 				$product->set_stock_status( 'instock' );
 			} elseif ( $product->get_manage_stock() ) {
diff --git a/unit-tests/Tests/Version4/Products.php b/unit-tests/Tests/Version4/Products.php
index 94585a06e97..744674c8a8c 100644
--- a/unit-tests/Tests/Version4/Products.php
+++ b/unit-tests/Tests/Version4/Products.php
@@ -281,7 +281,7 @@ class Products extends WC_REST_Unit_Test_Case {
 		);
 		$response = $this->server->dispatch( $request );
 		$data     = $response->get_data();
-
+var_dump($data);
 		$this->assertEquals( 'Test API Update', $data['button_text'] );
 		$this->assertEquals( 'http://automattic.com', $data['external_url'] );
 	}