Key Points:

This document outlines the Seller-Fault Cancellation Rate (SFCR) requirements on TikTok Shop. SFCR compliance is also subject to our Fulfillment Policy. Sellers must comply with both this document and the Fulfillment Policy when fulfilling orders on TikTok Shop.

• Seller-Fault Cancellation Rate metric is used to evaluate the quality of a seller's fulfillment process and product shipping. A high rate of cancellations due to seller issues indicates fulfillment quality issues.
• Seller Requirement: Maintain an Seller-Fault Cancellation Rate of less than or equal to 2.5%.
• You can check your Seller-Fault Cancellation Rate performance on the Fulfillment Performance page or on the Metric diagnostic tool page in Seller Center.

Seller-Fault Cancellation Rate

Seller Fault Cancellation Rate (SFCR) represents the percentage of confirmed orders within a specific evaluation period that were canceled due to the seller's fault. It's used to evaluate the quality of a seller's fulfillment process. If a seller has a high rate of seller-fault cancellations, it indicates an issue with the efficacy and quality of a seller's fulfillment process.

What's Considered a Seller-Fault Cancellation?

NOTE: Creator sample orders are NOT included in SFCR calculations.

How Seller-Fault Cancellation Rate (SFCR) Impacts Your Shop

SFCR is one of the core four metrics used to evaluate a shop's fulfillment performance and shop health. The four core performance metrics, based on TikTok Shop's Fulfillment Policy, are:

• Valid Tracking Rate (VTR)
• Late Dispatch Rate (LDR)
• On-Time Delivery Rate (OTDR)
• Seller-Fault Cancellation Rate (SFCR)

Your SFCR directly impacts your Shop Performance Score (SPS). Your SPS is calculated based on three performance factors:

1. Product Satisfaction
2. Fulfillment and Logistics
3. Customer Service

Every shop's fulfillment and logistics performance is calculated using the OTDR and SFCR metrics. So a strong SFCR helps to improve your overall SPS.

Seller-Fault Cancellation Rate (SFCR) Violations

Per our Fulfillment Policy, all sellers are required to maintain a SFCR of less than or equal to 2.5%. When a shop's SFCR does not meet the policy expectations of equal to or less than 2.5%, enforcement actions will be imposed.
Under the Seller Enforcement Policy, these violations can include, but are not limited to, Account Health Rating (AHR) point deductions, decreased visibility, extended settlement period, or order volume limits for your shop.
Additionally, the more SFCR violations a shop gets, the stricter the enforcement actions imposed will become. If over a period of 30 or more days, a seller has a cancellation rate of 90% or over due to seller-fault reasons (with no delivery), the enforcement action taken for failing to fulfill orders may include, but is not limited to, temporary shop suspension or permanent shop deactivation.

Exception for SFCR

Fulfilled by TikTok (FBT) orders receive complete order protection. This means that although your FBT orders are counted in the total number of confirmed orders, FBT orders are excluded from the number of orders canceled due to seller's fault.

How Seller-Fault Cancellation Rate (SFCR) Is Calculated

Seller Fault Cancellation Rate (SFCR) = Number of orders canceled due to seller's fault / Number of all orders in the To Ship - Awaiting Shipment stage in that period.
NOTE: TikTok Shop defines confirmed orders as orders with To Ship - Awaiting Shipment status. You can find these orders in the Manage Orders page. Use the To Ship - Awaiting Shipment filter to find them.

Example

Number of orders in the To Ship - Awaiting Shipment stage during the evaluation period = 200
Out of the above, number of non-FBT orders canceled by the seller OR number of orders auto-canceled due to above mentioned issues = 10

1. 10 / 200 = 0.05
2. 0.05 x 100 = 5%

SFCR = 5%
If you believe your SFCR is inaccurate, you can request an appeal.

Seller-Fault Cancellation Rate (SFCR) Appeals

Sellers bear responsibility for providing clear, verifiable, and original evidence. Claims relying solely on documents that cannot be independently verified are less likely to be accepted.A SFCR enforcement can be appealed based on the following rules:

• Each SFCR enforcement can only be appealed twice.
• Initial appeal must be submitted within 30 days of the enforcement message. If the first appeal is unsuccessful, the second appeal must be submitted within 15 days of initial appeal rejection.

Accepted Appeal Scenarios

To appeal a SFCR violation, it must meet one of the acceptable appeal scenarios listed below.

1. Customer-related issues: Customer-related issues delayed the order dispatch. Issues include invalid customer information, or customer requests to cancel the order.
2. Order was dispatched prior to the auto-cancellation cut-off SLA: The order was auto-canceled due to the tracking status on the TikTok Shop not being updated before the auto-cancellation SLA cut-off.
3. Logistics Service Provider Liability: Warehouse operations were disrupted by local force majeure events (e.g., natural disasters, labor disputes). As a result, tracking information was not updated before the auto-cancellation cut-off, and the order was cancelled.
4. Technical issue on the TikTok Shop platform: The order cancellation was the result of technical issues with Seller Center that prevented order tracking information from being updated. The technical issue must persist and remain unsolved until after the auto-cancellation SLA cut-off.
5. Seller Enterprise Resource Planning (ERP) or Independent Software Vendor (ISV) technical issue: The order cancellation was due to an order sync issue caused by a system error with a seller's ERP or ISV that canceled orders from the seller's end.
6. Test Orders: The order cancellation is part of a seller testing the transaction process on the platform for their shop. Orders placed for testing purposes must be canceled on the customer side, not the seller side. Appeals for seller cancellation will be rejected for more than 30 test orders.

Appeal Requirements

To successfully submit an appeal for technical issues scenarios, you will need to provide the following documentation.

1. Customer-related issues: Provide the following:
   1. Screenshots of the communication history with the customer clearly showing that the customer requested cancellation, requested shipment be delayed, or did not respond to the seller in time, affecting dispatch.
   2. The order ID associated with the canceled or delayed order. The order ID and relevant customer communication must be visible in the same screenshot.
2. Order was dispatched prior to the auto-cancellation cut-off SLA. Must provide both of the following:
   1. A screenshot from Seller Center showing the order auto-cancellation SLA for each of the orders.
   2. A screenshot from the logistics service provider of the order's tracking nodes showing that the "Package Awaiting Pickup Time" timestamp is earlier than the auto-cancellation SLA for each of the orders.
3. Logistics Service Provide (Seller Shipping) Liability: Provide one of the following:
   1. A screenshot or official document from the carrier confirming that the orders impacted were due to their fault. The screenshot or document must include all of the following:
      1. US local fulfillment warehouse vendor's company name
      2. Impact period
      3. Impacted order count
      4. Impacted tracking IDs list
      5. US local fulfillment warehouse vendor's seal or signature
   2. Screenshots of communication with the carrier that clearly show the issue was caused by the carrier's fault.
   3. An official statement issued through the vendor's official channel confirming the disruption, with a verifiable link included.
4. Technical issue on the TikTok Shop platform: Provide one of the following:
   1. A screenshot of the system error along with the date the error occurred. Ensure the error date matches the timeline of the violation.
   2. A screenshot of the communication history with the TikTok platform product team confirming that the issue was caused by a system error.
   3. TikTok Shop’s official notifications of system maintenance or anomalies
5. Seller Enterprise Resource Planning (ERP) or Independent Software Vendor (ISV) technical issue: Provide one or both of the following:
   1. A screenshot of the system error message, prompt, or error code, along with the date the error occurred. Ensure the error date matches the timeline of the violation.
   2. A screenshot or official document provided by the ERP or ISV vendor confirming the issue was caused by their system error. The screenshot or document must include the vendor's company name, seller's company name (or shop name), impact period, number of impacted orders, and the vendor's seal or signature.
6. Test Orders:
   1. Screenshots of the test orders placed from the customer's side. Each screenshot must show:
      1. Order ID
      2. Order placement date
      3. Customer name
      4. Information indicating the order was placed for testing purposes
   2. A brief explanation of why the orders were canceled by the seller instead of the customer.
   3. The number of test orders submitted must not exceed 30 orders.

Enforcement Actions and Appeals

We regularly review shops for compliance with this document and our Fulfillment Policy. If any violations are identified, TikTok Shop may take enforcement action at our sole discretion. This may include, but is not limited to:

• Deducting points from your Account Health Rating
• Removing product listings
• Revoking your access to offer products for sale
• Issuing refunds to customers

For more information on enforcement actions, refer to our Seller Enforcement Policy. To appeal an enforcement action, visit the Appeals section for guidance.

Additional Links

• Seller-Fault Cancellation Rate Best Practices and FAQs