The Cancellation Rate (CR) is all seller-cancelled orders represented as a percentage of total orders during a given 7-day time period. CR only applies to seller-fulfilled orders.
This metric includes all order 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 that are cancelled by the customer directly on Amazon are not included.
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.
It is important 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.
A decision not to fulfill an order prior to ship-confirmation is a cancelled 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 CR and download your CR report: