Writing an Order Cancellation Letter (with Sample)

Cancelling an order is quite common, and businesses expect a certain number of orders placed to be cancelled by consumers. The best way to cancel a purchase order is by phone.

This will quickly stop the order from being processed. However, it is also a good idea to send an order cancellation letter for purchase orders that take longer to process as well as to formally verify a cancelled purchase.

Should Not Wait To Cancel A Purchase

Consumers should not wait to cancel a purchase. It is more likely the cancellation will be effective if the time between the purchasing and cancellation is short. Some companies have a time limit in which cancellations must be made.

Common Reason

Businesses also cancel orders. The most common reason for cancelling an order is when a supplier doesn’t honor their commitment and fails to deliver the goods on the agreed date.

Cancelling a purchase is usually disappointing because the consumer or business was counting on receiving the products, but, even if they feel disappointed and somewhat angry, they should be polite when writing a letter.

If the consumer decided that they cannot afford the products or do not need them, they should also feel free to cancel their order. The letter should be short and firm, giving all the required information in a clear format.

The information that should be included in the cancellation letter:

  • The name of the customer
  • The date the order was placed
  • The order number of the items being cancelled
  • A list of name of items being cancelled
  • A list of items not being cancelled if they are on the same purchase order
  • The list should include the size, color, quantity and inventory number of the items being cancelled
  • The time the cancellation should be completed
  • The reason for the cancellation (optional)
  • A request for written confirmation of the cancellation
  • Copies of any receipts, invoices or purchase orders

Reason For Cancellation

If the product or goods were received and found to be faulty or not as advertised, this could be mentioned in the letter. However, it is not essential for an individual consumer to give a reason. 

A business that is cancelling a shipment of goods, should give a reason. Even with proof of a good reason for cancelling, the cancellation is not complete until the other party acknowledges or agrees with it.

Here is an example of a purchase order cancellation letter from a business. Certified mail should be used to provide the customer with proof of the date and time the cancellation letter was received.

Sample Cancellation Letter For Company

COMPANY LETTERHEAD

Your Name
Name of Company
Address of Company
City, State, Zip Code

DATE

Name of Company
Name of Person responsible for taking orders
Address of Company
City, State, Zip Code

Dear NAME of RESPONSIBLE PERSON:

This letter is a formal request to cancel the order REF. NUMBER that I placed with you on DATE. It is for DOLLAR AMOUNT. As agreed by you, the goods were to be delivered to this address on or before DATE. 

Today is five days past the agreed date, and we have not received any notice from you about the delay.

I expect you will credit our account with a full refund for AMOUNT that was paid according to the agreement signed by both of us within 10 working days. 

I have enclosed a copy of the agreement. Kindly send written confirmation of my cancellation.

If you have any questions you can reach me at Name@email.com or at 555-123-4567. Thank you for your quick attention to this matter.

Sincerely,

Signature
Your Name
List of enclosures