The cancelation rate is all seller-canceled orders represented as a percentage of total orders during a given 7-day time period. Cancelation rate only applies to seller-fulfilled orders.
This metric includes all order and item cancelations initiated by the seller, with the exception of those that are requested by the customer using the order cancelation option in their Amazon account. Pending orders or items that are canceled by the customer directly on Amazon are not included.
Our policy recommends sellers to maintain a cancelation rate under 2.5% in order to sell on Amazon. A cancelation rate above 2.5% may result in deactivation of seller-fullfilled 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 before fulfillment, it's usually because the product is out of stock. Some percentage of stock-outs can be unavoidable in normal business practice, but we expect you to try to minimize such issues. High cancelation 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 fulfill an order before ship-confirmation is a canceled 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 cancelation rate and download your report: