The cancellation rate is all seller-cancelled orders represented as a percentage of total orders during a given seven 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 that sellers 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.
It is important to ensure that products you have listed on Amazon are in stock and available to ship. When you cancel an order or items within the order prior to fulfilment, it’s usually because the product is out of stock. Of course, some percentage of stock-outs might be unavoidable in normal business practice, but we expect you to try to minimize 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 prior to ship-confirmation is a cancelled order. Once an order has been 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: