Order Cancellations
What is Order Cancellations?
Order Cancellations allows customers to cancel their entire order directly from the Order Editing interface during the editing window. You have full control over refund methods and can apply restocking fees if desired.
Customer Experience
When a customer selects "Cancel order" a dropdown menu appears which asks for a reason behind the customers cancellation request. They will also be asked to provide additional information (Optional).
When to Use Order Cancellations
Best for: Most merchants—offering cancellations provides flexibility and reduces support burden.
Examples:
Customer ordered by mistake and wants to cancel immediately
Customer found a better price elsewhere and cancels within editing window
Customer changes their mind before order is fulfilled
Benefits:
Reduces support tickets - Customers cancel themselves instead of contacting support
Saves processing fees - Self-service cancellations can include restocking fees to offset Shopify's 2.9% fee and credit card processing fees
Improves customer experience - Quick, easy cancellation process
Consider disabling if: You have a strict no-cancellation policy, or want to manually review all cancellation requests.
Important: Order Downgrade Requirement
To enable Order Cancellations, you must have Order Downgrade turned ON in Settings.
Order cancellation is technically a full order downgrade (reducing order value to zero), so Order Downgrade must be enabled first.
Where to enable: Settings > Order Downgrade
Refund Methods
You can choose how customers receive their refund when they cancel an order.
Option 1: Original Payment Method
Refund is processed back to the customer's original payment method (credit card, PayPal, etc.).
Option 2: Store Credit
Refund is issued as store credit, encouraging customers to shop with you again instead of losing them entirely.
Option 3: Shopify Flow
Use Shopify Flow to create custom refund automation based on your specific business rules.
How to Set Your Refund Method
Navigate to App Blocks > Order Cancellations
Locate Refund Method
Select your preferred option:
Original Payment Method
Store Credit
Shopify Flow
Click Save
Restocking Fee
What is a Restocking Fee?
A restocking fee is a charge applied to customers who cancel their order. This fee helps offset the costs you incur from processing the original transaction.
Why Apply a Restocking Fee?
Covers processing costs: When an order is placed, you pay Shopify's 2.9% transaction fee plus credit card processing fees. If a customer cancels, you still pay these fees. A restocking fee helps recover these costs.
Example:
Order total: $100
Your costs: $2.90 (Shopify) + $2.50 (credit card) = $5.40
Restocking fee: $5.00
Net loss reduced from $5.40 to $0.40
How to Set a Restocking Fee
In App Blocks > Order Cancellations
Locate Restocking Fee
Enter your fee amount or percentage
Fixed amount: Enter dollar amount (e.g., "$5.00")
Percentage: Enter percentage (e.g., "5%" of order value)
Click Save
Recommended: Set a restocking fee of 3-5% to cover standard processing fees, or calculate your actual costs and set accordingly.
How to Enable Order Cancellations
First: Ensure Order Downgrade is enabled in Settings
Navigate to App Blocks > Order Cancellations
Toggle ON
Select your refund method
(Optional) Set a restocking fee
Click Save
Last updated