Order Cancellation Rate

What is Order Cancellation Rate?

Percentage of orders that are canceled before they are shipped.

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How to calculate Order Cancellation Rate?

(Total Canceled Orders / Total Orders) * 100

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What is the business impact of Order Cancellation Rate?

High cancellation rates can lead to lost sales, increased costs, dissatisfied customers, and inventory bloat.

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Industry standard for Order Cancellation Rate

• Industry Benchmark: Below 2%

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How to improve Order Cancellation Rate?

• Streamline the process to improve fulfillment efficiency and shrink the cancellation window.
• Offer flexibility to modify orders through product or variant substitutions.
• Implement a suitable return policy to minimize order cancellations
• Improved visibility into post-purchase order processing.