Canceled Orders Rate

Canceled Orders Rate is a metric that tracks the percentage of orders that are canceled compared to the total number of orders placed.

Canceled Orders Rate metric is used to measure the effectiveness of ecommerce operations. It tracks the percentage of orders that are canceled compared to the total number of orders placed during a specified period. This metric is critical as it provides a valuable insight into customer experience. Analyzing pattern in canceled orders to identify key areas of concerns, make required process improvements, and support customer retention.


Canceled Orders Rate = (Number of Canceled Orders / Total Number of Orders) * 100


Let's say a store had 200 total orders in a month and 50 of the orders were cancelled. The Cancelled Orders Rate would be (50/200) * 100 = 25%.

Why is Canceled Orders Rate important?

Canceled Orders Rate helps to measure customer retention and identify areas of improvement. It helps to track the customer experience process, spot problems, and measure the effectiveness and efficiency of their operations. A high Canceled Orders Rate can be a sign of inadequate customer service, bad product descriptions and images, wrong item availability or shipment delays.

Which factors impact Canceled Orders Rate?

There are various factors that can influence Canceled Orders Rate in an ecommerce business. These factors include website user experience, product information and descriptions, product availability, return policy, shipping terms and pricing, customer dissatisfaction, shipping delays, and payment status.

How can Canceled Orders Rate be improved?

In order to reduce Canceled Orders Rate, ecommerce businesses should constantly monitor customer feedback, use real-time tracking tools, and have clear communication around shipping policies. Additionally, having a responsive customer service team capable of quickly resolving issues and adding product reviews and introductions can also help in reducing the percentage of Canceled Orders.

What is Canceled Orders Rate's relationship with other metrics?

The Canceled Orders Rate is related to a number of ecommerce metrics, such as conversion rate, customer satisfaction, net promoter score, and customer lifetime value. A high Canceled Orders Rate reflects a bad customer experience, which in turn negatively impacts conversion rate, customer satisfaction, and customer lifetime value. A reduction in the Canceled Orders Rate will result in improvement in these other ecommerce metrics.

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