Cancellation Rate
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 are 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-fullfilled offers.
Why should you avoid order cancellations initiated by the seller?
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 prior to fulfilment, it’s usually because the product is out of stock. Although in normal business practice, some percentage of stock-outs might be unavoidable, it is recommended 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.
What is the difference between a refunded and a canceled order?
A decision to not fulfill an order prior to ship-confirmation is a canceled order. Once an order is ship-confirmed, a decision to accept a return or not ship an item is treated as a refund.
To view your cancellation rate and download your report:
- Go to the Account Health page in Seller Central.
- In the Delivery Performance section, click View details.
- Select the Pre-Fulfillment cancellation rate tab. Scroll down and click Download Report.
