Avoid cancelling orders
Avoid cancelling orders unless requested to do so by buyers. Orders that are cancelled for any reason other than by buyer request will negatively affect your Cancellation Rate. Some percentage of stock-outs may be unavoidable in normal business practice. However, we expect you to minimize such issues.
If cancelled orders are affecting your overall seller performance, here are some steps you can take to improve:
Update your Amazon inventory regularly to avoid receiving orders for items that you can't ship by the expected date (stock-outs). You may want to update your inventory multiple times per day if you are selling through other channels.
Check and re-check price submissions. Price errors can lead to increased order cancellations. If you are using a third-party integrator to update your listings, take appropriate measures to prevent the integrator from making a mistake.
If you think your listing may be eligible for the Buy Box, make sure you have enough stock on hand to meet potential increases in order volumes
If you must cancel an order, do so as soon as you know you can't fulfill it. Buyers may be more forgiving if you cancel an order immediately, rather than after the expected ship date. Always follow up the cancellation with an apology to the buyer.