Cancellations can be ‘Buyer Initiated’ or ‘Seller Initiated’.
Buyer initiated are order cancellations requested by the buyer, those requests are submitted by calling the customer service, or done by them from their account.
Seller initiated are cancellations where the seller is at fault, for example, if the seller runs out of stock or failed to ship / handover the item to the courier 1 day after their Estimated Ship Date. Seller Initiated Cancellations can be detrimental to your Account Health, so as a selling partner, it is your duty to ensure that products you have listed on Qonooz 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.
You will have an option to cancel the order if it is NOT yet scheduled for pick-up or NOT yet confirmed. If you already scheduled a pick-up date or confirmed the order, a shipping number will be generated and you should not cancel the order even if the item is still on your premises.
When you cancel an order, Qonooz automatically updates the order status in the buyer’s Qonooz account and sends an email notification to the buyer. Cancellations are selling risks that you need to manage as it may affect your seller performance and fees.
One metric to measure your Delivery Performance is Pre-Fulfillment Cancellation Rate. The Cancellation Rate (CR) is all seller-cancelled orders as a percentage of total orders during a given 7-day time period.
Cancelation Rate % = (Canceled Orders) / (Total Orders) x 100
For example, in 7 days you received a total of 100 orders and out of which you have incurred 2 seller initiated (seller fault) cancellations, your cancellation rate is 2%. CR only applies to “Seller Fulfilled” orders which means it will not apply to FBQ.
This metric includes all order cancellations initiated by the seller, or when an order is cancelled automatically by Qonooz because the seller has not scheduled for pick-up or pick-up is scheduled but the item is not handed over to a pick-up associate, with the exception of those that are requested by the customer using the order-cancellation options in their Qonooz account
Our policy is that sellers maintain a CR under 2.5% in order to sell on Qonooz. A CR above 2.5% may result in account deactivation. After you cancel an order, Qonooz will send an order cancellation email to the buyer. Order cancellations can be factored into your overall performance.
If the seller cancelled an order due to out of stock, there will be a ‘Cancellation Fee’ which is equivalent to item’s Category Commission Fees & Sale Closing Fees.
For example, if you are selling a Camera with a commission fee of 5%, and you cancelled the order as you noticed that you don’t have enough stock, we will be charging you a cancellation fee of 5% which is equivalent to commission fees.
Auto-cancellation is also subject to cancellation fee. Qonooz will auto-cancel orders that have not been scheduled for pick-up or pick-up is scheduled but the item is not handed over to a pick-up associate within 1 day after the Estimated Ship Date.
Buyers may request order cancellations when they changed their mind or incorrectly placed the order. We may cancel these orders if not yet scheduled for pick-up or not yet confirmed. Canceling an order that the buyer requested does not have an impact on your Cancellation Rate metric, nor will you be charged a cancellation fee.
