Cancellation rate

The cancellation rate is all seller-canceled orders represented as a percentage of total orders during a given 7-day time period. Cancellation rate only applies to seller-fulfilled orders.

This metric includes all order and item cancellations initiated by the seller, including orders automatically canceled by Amazon because the seller did not confirm the shipment. With the exception of those cancellations that are requested by the customer using the order cancellation 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 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.

Why are order cancellations initiated by the seller is bad?

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 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.

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

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 cancellation rate and download your report:

1. Go to the Account health page in Seller Central.
2. In the Shipping Performance section, click View details.
3. Select the Pre-Fulfillment cancellation rate tab. Scroll down and click Download Report.

What can you do if Cancelation rate metric is high and your seller-fulfilled offers are at risk of deactivation?

If your seller-fulfilled offers are at risk of deactivation, you may be eligible to take a quiz to avoid the deactivation. For eligible sellers, the option will appear in the banner at the top of your Account health page, where you will be given an opportunity to take a five-question quiz regarding the CR policy. You have 72 hours to take the quiz. If you pass the quiz, no plan of action (POA) will be required from you, or will your listings be deactivated. We recommend that you look for and take the quiz whenever available, as this is the best way to maintain your account health.

If your seller-fulfilled offers are already deactivated due to not meeting the CR requirement, you can follow the appeal path from Seller Central’s Account health page by clicking on Submit Appeal and following the online instructions to submit a POA for reinstatement.

Fix an offer removed due to order cancellation

We closely monitor your listings with seller-canceled orders and may remove the offer if there is a history of seller-canceled orders or two consecutive seller-cancellations for orders placed in last 30 days.

You can reactivate the offers by taking the following steps:

1. Find the removed ASINs on Manage Inventory using one of the following methods (ASINs removed for cancellation will appear as “Inactive” with an orange icon.):
   • Search for the ASIN in the Search bar.
   • Click the Inactive tab on top of the Manage Inventory page. You can find the ASINs removed by filtering for the inactive reason Paused.
2. Click Edit and update the price of the ASIN from Manage Inventory to reactivate the listing.

You can also update the price for inactive offers on Fix your products by clicking Out of stock under the Inactive listings display option.