Your Amazon business is growing like anything and you are making tons of money. You are on the top of the world and happy as orders are coming like Tsunami but this tsunami is getting bigger & bigger. Finally, you decided to cancel a few orders and BOOM!! You got a notification from Amazon that “Your Amazon account has been suspended due to high Order Cancellation Rate. To reinstate your account, submit the Plan-Of-Action (POA).
Table of Contents
- What Is Order Cancellation Rate?
- Sample E-mail (Seller Account Suspension Notice) From Amazon
- Reason for suspension notice due to Order Cancellation Rate
- Why Is It Important To Reduce Order Cancellation Rate?
- How To Reduce Order Cancellation Rate?
- How Does Order Cancellation Impact Seller?
- How To Re-open Suspended Account?
- Conclusion
What Is Order Cancellation Rate (OCR)?
Order Cancellation Rate (OCR) is the total number of orders cancelled by the seller before shipping to the customers during a given 7-day time period. The cancellation rate is applicable to seller fulfill orders only.
Orders pending for shipment will not be considered in cancellation metric if it is cancelled by the customer itself.
The OCR needs to be maintained under 2.5% to keep on selling on Amazon else your account will be suspended.
Sample E-mail (Seller Account Suspension Notice)
Below is the notice of Amazon seller account suspension due to Order Cancellation:
Dear Seller, Your Amazon seller account has been temporarily deactivated. Your listings have been removed. Funds may not be transferred to you but will stay in your account while we work with you to address this issue. Please ship any open orders to avoid further impact to your account. Why is this happening? More than 2.5% of orders in the last seven days were cancelled. Amazon’s Cancellation Rate Policy can be found at Amazon URL. How do I reactivate my account? To reactivate your account, please send a plan of action that explains: — The root cause(s) of the order cancellations — The actions you have taken to resolve the order cancellations — The steps you have taken to prevent order cancellations going forward How do I send the required information? Submit this information at Amazon URL. What happens if I do not send the requested information? If we do not receive the requested information within 14 days your account will be permanently deactivated. We’re here to help If you have questions about this policy or information requested above, please contact us at Amazon URL. What happens if I do not send the requested information? If we do not receive the requested information within 14 days your account will be permanently deactivated. We’re here to help If you have questions about this policy or information requested above, please contact us at Amazon URL. Has your account been deactivated in error? If you believe there has been an error, please submit an explanation. Your explanation should include the following information: –Evidence or examples that demonstrate that your account complies with our Cancellation Rate Policy Thank you!
Reason For Suspension Notice Due To High OCR
The reason is self-explanatory that you cancel the customer’s order; your order cancellation rate goes higher.
I have iterated it millions of times (almost in every article) that customer is god and Amazon worships its customer. Amazon keeps an account of each & every single cancellation from your side and the moment you breach the predefined target, it suspends you.
Why Is It Important To Reduce Order Cancellation Rate?
A customer invests a huge amount of time to select a product out of a million products and a simple cancellation from your side gives a headache to him/her.
The customer feels betrayed as precious time has been wasted and again s/he has to do the same research to order the same product.
This also raises a question on the seller’s reputation and its services that ultimately lead to financial loss.
How To Reduce OCR?
As a seller, you have to ensure that all the listed products are in stock and available for shipment.
When you cancel the order placed by customer before shipment, Amazon draws the inference that the product is OUT-OF-STOCK.
Amazon knows that few order cancellation is unavoidable in the normal business scenario, but it expects you to minimize this customer impacting practice.
So, always keep your inventory up-to-date and accepts only as many orders as you can handle.
How Does Order Cancellation Impact Seller?
If your order cancellation rate goes over 2.5%, you will surely lose your ability to sell. Above all, your financial stability gets hampered and you lost profit as well as loyal customers.
How To Re-open Suspended Account
In order to reopen seller account, you need to submit a detailed Plan-Of-Action or Letter of Appeal to Amazon with all the asked details and steps you have taken to avoid the same in future.
You can download a tried & tested version of POA for OCR shared below:
Sample Plan-of-Action (POA) / Letter of Appeal (Free Download)
👉Click here to Download Plan-Of-action (POA)/Letter of Appeal OCR
Amazon-POA-Order-Cancellation-Rate👉Click here to Download Plan-Of-action (POA)/Letter of Appeal for OCR
Conclusion
Amazon loves its customers more than its sellers irrespective of the fact that sellers are the backbone of the world’s biggest eCommerce platform.
To keep Amazon happy, you have to keep customers happy. So, avoid any cancellation by keeping the inventory up-to-date. And, mark the product sold out, if it’s not available.
To know more about seller account suspension and other major reasons, read 👉 How to reopen suspended seller account – A Complete Guide
——– If you still have any concern regarding Amazon or any other Digital Marketing strategies, ASK THE QUESTION in the comments below ——–
