The cancellation rate (CR) is the percentage of total orders cancelled by the seller, during a given 7-day time period. Cancellation rate only applies to seller-fulfilled orders.
This metric includes all order and item cancellations initiated by the seller, with the exception of those that were requested by the customer using the order-cancellation options in their Amazon account. Pending orders or items that are cancelled by the customer directly on Amazon are not included.
Our policy recommends sellers to maintain a cancellation rate under 2.5% in order to sell on Amazon. A cancellation rate above 2.5% may result in deactivation of seller-fulfilled offers.
We closely monitor your listings with seller-cancelled orders and may remove the offer if there is a history of seller-cancelled orders or two consecutive seller-cancellations for orders placed in the last 30 days. You can reactivate offers by taking the following steps:
It is important to ensure that products you have listed on Amazon are in stock and available to deliver. When you cancel an order or items within the order before fulfilment, it’s usually because the product is out of stock. some percentage of stock-outs can be unavoidable in normal business practice, but we expect you to try to minimize such issues. High cancellation rates are a problem that can impact your ability to sell. In the short term, it also negatively affects your bottom line because an unfulfilled item or order is lost revenue to your company.
A decision to not fulfil an order before dispatch confirmation is a cancelled order. Once an order is dispatch-confirmed, a decision to accept a return or not deliver an item is treated as a refund.
To view your cancellation rate and download your report: