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This article applies to selling in: India

Cancellation Rate

The cancellation rate is calculated as all seller-cancelled orders represented as a percentage of total orders over both a 7-day and a 30-day period. Cancellation Rate only applies to seller-fulfilled orders.

This metric includes all order cancellations initiated by the seller or when an order is cancelled automatically by Amazon because the seller has not shipped and ship-confirmed the order.

  1. within 24 hours of the Estimated Ship Date (ESD) for standard orders and
  2. Within Estimated Ship Date for Easy Ship Guaranteed Delivery and Local Shops orders

Cancellation Rate does not include:

  1. Cancellations that are requested by the customer using the order-cancellation options in their Amazon account, when cancelled by sellers using the reason as ‘Buyer Cancelled’.
  2. Pending orders that are cancelled by the customer directly on Amazon.

Why should you avoid order cancellations initiated by the seller?

Every order cancellation leads to very poor customer experience. It is important to ensure that products which you have listed on Amazon are in stock and available to ship. When you cancel an order placed by a buyer prior to fulfilment, it is usually because the product is out of stock. We expect you to keep inventory updated on Seller Central and try to minimise 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 order is lost revenue to your company.

Sellers are recommended to keep the Cancellation Rate under 2% to enable good customer experience and maintain good seller performance metrics. To avoid impacting these metrics, we recommend that you ship out your orders by the expected ship date.

Consistent poor performance may result in poor customer experience and could lead to enforcement action including loss of selling privileges on Amazon.

Offer Suppression due to order cancellation

We closely monitor your Easy Ship and Self Ship listings with high order cancellations, and take temporary suppression action on these listings. Listing with history of high order cancellations or with consecutive two order cancellations in last 30 days will qualify for temporary suppression. You can reactivate offers by taking the following steps:

  1. Go to Manage Inventory in Seller Central.
  2. In the search bar above your list of products, search for the ASIN that has been deactivated. Or you can select the Inactive option to filter for all inactive offers.
    Note: ASINs removed for cancellation will appear as Inactive (Ineligible for seller-fulfilment) status with an orange marking.
  3. Click Edit and the update the price of the ASIN to reactivate the listing.
You can also update the price for inactive offers on the Fix your products page by clicking Out of stock under the Inactive listings display option.

Cancelation charge

Sellers will be charged 100% of referral fee (if cancelled on or before Estimated Ship Date (ESD)) / 150% of referral fee (if cancelled after Estimated Ship Date) of the value of the products in an order as cancellation charge for seller-fulfilled orders that are cancelled under the following scenarios:

  1. Order is cancelled by seller for any reason other than buyer request. (Only cancellations requested by buyers through Amazon India website are considered buyer requested cancellations and will be exempted from cancellation charge).
  2. For Indian sellers, Order is cancelled automatically by Amazon because the seller has not shipped and ship-confirmed the order within 24 hours of Estimated Ship Date.
  3. For International sellers, Order is cancelled automatically by Amazon because the International Seller has not shipped and ship-confirmed the order within 24 hours of Estimated Ship Date or six days of Order Date, whichever is earlier.

    Sellers can view Cancellation Charges by visiting Reports tab on Seller Central and selecting Payments. Sellers can find the amount deducted as Cancellation Charges by visiting Transaction View and selecting Filter view by as Other. Cancellation Charge will be displayed with Transaction Type as Cancellation. Sellers can also use Find a transaction feature to search for charges for a particular cancelled order.

What is the difference between a refunded and a cancelled order?

A decision to not fulfil an order before ship-confirmation is a cancelled 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:

  1. Go to the Account Health page in Seller Central.
  2. In the Shipping Performance section, click View details.
  3. Select the Pre-Fulfilment cancellation rate tab. Scroll down and click Download Report.

See also

Order cancellations

Frequently Asked Questions about cancellations

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