QS Study

Meaning of Order Cancellation Letter

When the buyer writes letter to the seller requesting him not to deliver the ordered goods, it is called letter of order cancellation. Generally, customer places orders for delivering some specific goods in his address. Having been received an order from customer; the seller takes step to deliver goods immediately. Because, delay in delivery can cause the customer to do business elsewhere. However, after placing the order, the customer may be unwilling to get the delivery. In this situation, the customer writes a letter to the seller canceling the previously placed order. This letter is known as letter of order cancellation.

Causes of Order Cancellation

A potential buyer may cancel has order on the following grounds:

  • If the seller fails to deliver goods within the specified time.
  • If the prices of ordered products continues to decrease.
  • If the demand of the ordered items declines gradually.
  • If the customer gets an offer from elsewhere to buy the same product at a lower price.
  • If the customer decides to discontinue his business.