Maintaining a low order cancellation rate is very important across all channels.
A seller's order cancellation rate is correlated with the seller's rating/scorecard.
Low cancellation rate helps to maintain a high seller rating.
High cancellation rate has a negative impact on your seller rating and results in lost revenue.
Here are the cancellation rate standards for the channels below:
Amazon: < 2.5%
Walmart: <2.5%
eBay: < 0.5%
Typically, channels only adjust your seller rating for seller-cancelled orders prior to fulfillment. Cancellations requested by the buyer (for reasons not due to seller error, i.e. "customer changed mind") usually do not impact your seller rating, or they can be disputed.
Below are common reasons for order cancellation by the seller and tips to address each one :
No inventory | Tip: centrally manage your inventory in Zentail; do not manually edit inventory directly on the channel (i.e. Seller Central).
Incorrect pricing | Tip: centrally manage your pricing in Zentail.
Wrong product content | Tip: verify that your SKUs are linked to the correct listings, and open a case with the channel if your items are incorrectly tied to the wrong listing. Confirm accuracy of your product's images, descriptions, etc.
Overselling of fast-moving items | Tip: consider adding an inventory threshold.
Delayed order processing | Tip: frequently check your orders in Pending and Needs Attention to verify that they have been properly routed to the correct fulfillment method and to resolve any errors that may be preventing the order from being routed.