Study of cancelletion behaviour of online customers in e-commerce sites before the delivery of goods

Abstract

Cancellation of orders has been a major issue for e-commerce as it entails a lot of cost in forward and backward movement of goods, packaging and handling. In this report, we look non-product related factors causing order cancellations. We look at the cancellation which occur post-ordering but before delivery of the product. Hence, in these situations’ cancellation is done even without seeing the product. In our study, it has been found that long delivery times and price drop post-ordering either on the same platform or different platform are the major reasons for order cancellations, while accidental purchase or incorrect address are not major reasons. Upon further investigation into more salient causes, we find that price drop is the more prominent factor leading towards cancellation of order.