Total Cancellation Rate

Total Cancellation Rate: Total Cancellation Rate is all seller-cancelled orders as a percentage of total orders during a given time period. 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 within 24 hours of the Estimated Ship Date (for ES/MFN sellers), with the exception of those that are requested by the customer using the order-cancellation options in their Amazon account. Pending orders that are cancelled by the customer directly on Amazon are not included.

To view this metric on STEP dashboard, click here.

To know more about the metric, watch the following video in English and Hindi:

Number of seller cancelled orders(order ids)	3
Total numbers of orders	100
Total Cancellation Rate	3%

For FBA sellers:

Number of seller cancelled orders(FBA)	0
Total numbers of orders(FBA)	100
Total Cancellation Rate	0

For sellers selling through multiple delivery channels:

Number of seller cancelled orders (ES/ MFN+ Seller Flex)	30
Total numbers of orders(ES/MFN+ Seller Flex+ FBA)	100
Total Cancellation Rate	30%

For Seller Flex sellers:

Number of seller cancelled orders (Seller Flex)	28
Total numbers of orders(Seller Flex)	100
Total Cancellation Rate	28%

For ES/MFN sellers:

Number of seller cancelled orders (ES/MFN)	25
Total numbers of orders(ES/MFN)	100
Total Cancellation Rate	25%

Why are order cancellations initiated by the seller bad?

Every order cancellation leads to very poor customer experience. It is important to ensure that products you have listed on Amazon.in are in stock and available to ship. When you cancel an order placed by a buyer prior to fulfillment, it's usually because the product is out of stock. We expect you to keep inventory updated on Seller Central and try to minimize such issues. High cancellation rates are a problem that can impact your ability to sell.

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

A decision not to fulfill an order prior to 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.

How Total Cancellation Rate is different Cancellation Rate?

Total Cancellation is the percentage of orders cancelled by sellers to the total number of orders received during a specific period, irrespective of delivery channel, whereas Cancellation Rate is a metric which shows percentage of seller fulfilled orders to the total number of orders received. Cancellation only applies for seller fulfilled orders whereas Total cancellation Rate is calculated for all orders irrespective of the delivery channel.

To learn more about Cancellation Rate (ES/MFN), click here. Channel wise threshold will remain same and STEP will not impact metrics related to other programs.

To learn more about Seller flex Cancellation rate, click here. Channel wise threshold will remain same and STEP will not impact metrics related to other programs.

Tips to improve Total Cancellation Rate: Though your reasons may change as per your business but below are some of the top ways to improve Total Cancellation Rate:

• Update your Amazon inventory regularly to avoid receiving orders for items that you cannot ship by the expected date (stock-outs). You may want to update your inventory multiple times per day if you are selling through other channels.
• Check and re-check price submissions. Errors in price submissions can lead to increased order cancellations. If you are using a third-party integrator to update your listings, take appropriate measures to prevent the integrator from making a mistake.
• If you think your listing may be eligible for the Buy Box, make sure you have enough stock on hand to meet potential increase in order volumes.
• Plan and manage your inventory during the time of sale events, to avoid Out of Stock issues leading to order cancellations.