CernyM - 9:39 pm on Aug 22, 2011 (gmt 0)
Yes, I know this - any number is absolutely wrong though. It's not my fault that someone decided to cancel their order. I have no problem with people cancelling their order - it's their money and I should always refund - I hate companies that tell me as a consumer that it's too late to cancel pre-ship...so for Amazon to ding me is absolutely crazy...luckily I'm only at 1.5% but I'm getting there - makes me angry to no end that I even have to worry about this.
Even 1.5% sounds high. I've shipped many thousands of orders and I think our pre-order cancellation rate is something like 0.2% or so.
Amazon has a fairly detailed explanation of the pre-order cancellation rate and why it is important to them. Basically, in their experience, the most often cause of merchant order cancellations is due to out of stock, which they don't like.
The actual incidence over time of customer driven cancellations should be quite low over a reasonable time frame.
I hope you are right...that would be nice - I just gave a $70 refund to a guy because his address was wrong and usps sent back to me.
I believe that refund rate was an important metric before charge-when-ship was implemented.
As an aside, if you start using Fulfilled by Amazon, your pre-order cancellation rate will drop to zero and your sales will generally rise.