What is Pre Fulfillment Cancellation Rate and How to Manage it on Amazon?

As an Amazon seller, understanding your cancellation rate is crucial to maintaining a healthy account and increasing your sales.

The pre fulfillment cancellation rate, in particular, can affect your ability to win the Buy Box and your overall account health.

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In this article, we'll explore what pre fulfillment cancellation rate is, how it's calculated, and how you can manage it effectively.

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What is Pre Fulfillment Cancellation Rate?

Pre fulfillment cancellation rate refers to the percentage of orders that were cancelled by the seller before they were shipped to the customer.

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This includes cancellations due to a lack of inventory, pricing errors, or other reasons that prevented the seller from fulfilling the order.

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Pre fulfillment cancellations can negatively impact customer experience and cause frustration for buyers, leading to lower seller ratings and decreased sales.

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How is Amazon Cancellation Rate Calculated?

Amazon calculates pre fulfillment cancellation rate by dividing the number of cancelled orders before shipment by the total number of orders in a given time period.

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The time period can vary, but it's typically measured over a trailing 30-day period. The resulting percentage is your pre fulfillment cancellation rate.

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What is a High Cancellation Rate on Amazon?

A high pre fulfillment cancellation rate on Amazon is generally considered anything over 2.5%. When your pre fulfillment cancellation rate exceeds this threshold, Amazon may consider it an indicator of poor inventory management, inaccurate listings, or unreliable fulfillment processes.

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A high cancellation rate can negatively impact your account health and make it more difficult to win the Buy Box.

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Can Amazon Cancel FBA Orders?

Yes, Amazon can cancel FBA (Fulfillment by Amazon) orders if the seller is unable to provide the product or if there are other issues with the order. However, Amazon is responsible for fulfilling FBA orders and will only cancel orders if it's absolutely necessary.

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As a seller, you should make every effort to keep your inventory levels accurate and ensure that your FBA orders are fulfilled promptly to minimize cancellations.

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Order Cancellations and Account Health

Order cancellations can have a significant impact on your account health on Amazon. High pre fulfillment cancellation rates can lead to account suspension, decreased visibility in search results, and lower customer trust.

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To manage your pre fulfillment cancellation rate effectively, you should monitor your inventory levels closely, ensure accurate listings, and use tools to manage your fulfillment processes efficiently. By doing so, you can maintain a healthy account and increase your chances of winning the Buy Box.

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Conclusion 

In conclusion, pre fulfillment cancellation rate is an important metric for Amazon sellers to understand and manage effectively.

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By keeping your cancellation rate low, you can improve customer satisfaction, maintain a healthy account, and increase your sales on Amazon.