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Cancellation Rate: A Classic Approach! - skip to Main Content
Cancellation Rate: A Classic Approach!

Cancellation Rate: A Classic Approach!

Cancellation of order sounds neither triumph nor a loss for Amazon sellers. But, there are certain standards that sellers have to maintain in order to make the order reach to the doors else refunded money sometimes, embarks major concerns for their accounts. They have to maintain cancellation rates as low because high cancellation rates lead to suspension of the account.

Therefore, here is a useful guide for sellers to keep a check on their Amazon accounts’ cancellation rates-

Amazon ensures a flawless service for its customers. Its correct order delivery, damage-free item shipped, and timely delivery constitute the core of the best fulfillment services. The sellers offering their products at this e-commerce platform undergo cancellation rates or refund rates due to varied reasons.

Seller’s Knowledge to the Cancellation Rate

Abbreviated as CR, cancellation rate only executes to seller-fulfilled orders. It determines seller-cancelled orders that represent a percentage of total orders during a given 1-week duration. This leads to order cancellations made by the seller, excluding of those requested by the customers through the order-cancellation options in consumers’ Amazon accounts.

To maintain consistency of selling on Amazon, sellers have to maintain a cancellation rate under 2.5%. If CR exceeds 2.5%, it leads to accounts suspension. That is why it is essential to go with smart strategies when it comes to maintaining your business for long-term in Amazon. Also, it is crucial to get control of these cancellation parameters with effective solutions. Thus, sellers need to work on products and items that are generally demanded by the consumers.

For the newbie sellers on Amazon, going through the policy is a must before it’s too late.

Seller-initiated Cancellations Terms

Reasons for sellers to cancel the orders are many. The two major reasons are

  • The item is out of stock
  • Customer’s request

Make sure that customers provide genuine and valid reasons to cancel the order because last-minute cancellation may hinder your account’s progress rate.

Important Facts to Keep in Mind:

  • Be a smart seller! Before a buyer places his order and pays for it, make sure that products listed on the Amazon are in stock and available for shipping.
  • Notify consumer if you have cancelled the order due to non-availability of the item in the stock. It is better to minimize such issues in order to prevent the dark side of the cancellation rate.
  • Keep in mind that high cancellation rates are the problem to your selling performance.
  • The bottom line is that high CR is directly proportional to the lost revenue of your business.

Difference between Cancelled Order and Refunded Order

If a seller decides to cancel an order before its shipping, it is a cancelled order. On the other side, if an order is ship-approved and seller still cancels the order, then it is treated as refunded 0rder. To check your CR progress report, here are three simple steps to follow:

  • Visit the Seller Central and go to the Account Health Page
  • Click view details in the section of shipping performance
  • Click on the tab of cancellation rate and download your report via the Download Report button.

So easy to get your cancellation report at Amazon! Keep selling, keep earning!

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