Cancellation rate

The Cancellation Rate (CR) is an important metric on Amazon that measures a seller's ability to fulfill orders as promised. It represents the percentage of total orders canceled by the seller within a given 7-day time period, and it applies specifically to seller-fulfilled orders. Here are some key points about the Cancellation Rate:

- **Metric Calculation:** The CR is calculated by dividing the number of orders canceled by the seller (excluding customer-requested cancellations) within a 7-day period by the total number of orders in the same period.

- **Policy Requirement:** Amazon recommends that sellers maintain a Cancellation Rate under 2.5% to continue selling on the platform. If the Cancellation Rate exceeds 2.5%, it may result in the deactivation of seller-fulfilled offers.

- **Offer Suppression:** Amazon closely monitors listings associated with seller-canceled orders. If there's a history of seller-canceled orders or two consecutive seller-cancellations for orders placed in the last 30 days, Amazon may remove the offer from the platform. Sellers can reactivate these offers by adjusting the price of the affected ASINs.

- **Avoiding Order Cancellations:** It's essential for sellers to minimize order cancellations initiated by the seller. High cancellation rates can negatively impact a seller's ability to sell and can also lead to lost revenue. Sellers are expected to ensure that products listed on Amazon are in stock and available for delivery. Additionally, sellers must not ask buyers to cancel orders that they are unable to fulfill.

- **Refunded vs. Canceled Orders:** A canceled order is a decision not to fulfill an order before it is ship-confirmed, typically due to the product being out of stock. On the other hand, a refunded order occurs after an order is ship-confirmed, where the decision is made to accept a return or not ship an item, and it is treated as a refund.

If a seller's seller-fulfilled offers are at risk of deactivation due to a high Cancellation Rate, they may have the opportunity to take a quiz to avoid deactivation. Eligible sellers will see this option in the banner at the top of their Account Health page. Passing the quiz can prevent deactivation and the need for a Plan of Action (POA).

If a seller's seller-fulfilled offers have already been deactivated due to not meeting the Cancellation Rate requirement, they can follow the appeal path from Seller Central's Account Health page by clicking "Submit Appeal" and following the online instructions to submit a Plan of Action (POA) for reinstatement.

It's crucial for sellers to actively manage their Cancellation Rate by ensuring products are in stock and minimizing order cancellations initiated by the seller. Maintaining a low Cancellation Rate helps provide a positive customer experience and ensures compliance with Amazon's performance targets and policies.