This article applies to selling in: United Arab Emirates

What happens if you cancel an order?

Order Cancellations

Cancellations can be 'Buyer Initiated' or 'Seller Initiated'.

Buyer initiated are order cancellations requested by the buyer, those requests are submitted via messaging the seller directly, calling the customer service, or done by them from their account as they have a cancellation option up to 30 minutes from the time they placed the order.

Seller initiated are cancellations where the seller is at fault, for example, if the seller runs out of stock or failed to ship / handover the item to the courier +1 working day after their Estimated Ship Date. Seller Initiated Cancellations can be detrimental to your Account Health, so as a selling partner, it is your duty to ensure that products you have listed on Amazon 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. Of course, some percentage of stock-outs might be unavoidable in normal business practice, but we expect you to try 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 order is lost revenue to your company.

Cancellation vs. Return

An order is considered as 'Cancelled' if it’s cancelled before fulfillment. If the order is cancelled after the courier collected the item from you, it is already considered as “Returned” even if the item is not successfully delivered to the buyer. Both cancellations and returns are a normal part of most sales operations. You can cancel orders by going to Orders menu, then Manage Order or use an Order Cancellation Feed if you need to cancel multiple orders.

When to cancel orders?

You will have an option to cancel the order if it is NOT yet scheduled for pick-up (Easy-ship) or NOT yet confirmed (Self-ship). It will be in the ‘Unshipped’ tab in your Seller Central Manage Orders page. If you already scheduled a pick-up date or confirmed the order, a shipping number will be generated and you should not cancel the order even if the item is still on your premises. Continue to prepare the package for shipment (including pickup by Easy Ship courier). Tell the buyer that the order is already on its way and ask them to contact the courier to cancel the shipment or refuse the delivery. The refund will be credited to the buyer’s account once the item is returned to you.

What happens if you cancel an order?

When you cancel an order, Amazon automatically updates the order status in the buyer's Amazon account and sends an email notification to the buyer. Cancellations are selling risks that you need to manage as it may affect your seller performance and fees.

How do cancellations affect your Performance?

One metric to measure your Delivery Performance is Pre-Fulfillment Cancellation Rate. The Cancellation Rate (CR) is all seller-cancelled orders as a percentage of total orders during a given 7-day time period.

Cancelation Rate % = (Canceled Orders) / (Total Orders) x 100

For example, in 7 days you received a total of 100 orders and out of which you have incurred 2 seller initiated (seller fault) cancellations, your cancellation rate is 2%. CR only applies to “Seller Fulfilled” orders which means it will not apply to FBA.

This metric includes all order cancellations initiated by the seller, or when an order is cancelled automatically by Amazon because the seller has not scheduled for pick-up or pick-up is scheduled but the item is not handed over to a pick-up associate (for Easy Ship) , or seller has not shipped and ship-confirmed the order(for Amazon Self Ship) within 5 days after the Estimated Ship Date, with the exception of those that are requested by the customer using the order-cancellation options in their Amazon account

Our policy is that sellers maintain a CR under 2.5% in order to sell on Amazon. A CR above 2.5% may result in account deactivation. After you cancel an order, Amazon will send an order cancellation email to the buyer. Order cancellations can be factored into your overall performance.

How do cancellations affect your Seller Fees?

If the seller cancelled an order due to out of stock, there will be a 'Cancellation Fee' which is equivalent to item’s Category Referral Fee.

For example, if you are selling a Camera with a referral fee of 5%, and you cancelled the order as you noticed that you don’t have enough stock, we will be charging you a cancellation fee of 5% which is equivalent to referral fee.

Auto-cancellation is also subject to cancellation fee. Amazon will auto-cancel orders that have not been scheduled for pick-up or pick-up is scheduled but the item is not handed over to a pick-up associate (for Easy Ship) within +1 day after the Estimate Ship Date, or seller has not shipped and ship-confirmed the order (for Amazon Self Ship) within 5 days after the Estimated Ship Date.

Buyers may request order cancellations when they changed their mind or incorrectly placed the order. You may cancel these orders if not yet scheduled for pick-up or not yet confirmed. Canceling an order that the buyer requested does not have an impact on your Cancellation Rate metric, nor will you be charged a cancelation fee, just make sure to choose the correct cancellation reason which is 'buyer requested'. Note that the buyer will be informed immediately when you cancel with the reason, so do not falsely choose this reason unless the buyer has already requested it.

For more informtion about the importance of managing your cancellations, go to Order Cancellations .

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