Order cancellation fees are applied for several reasons:

Administrative processing: When an order is placed, administrative resources are deployed to process it. Even if the order is canceled before shipping, there has already been upstream work related to order entry, verification and preparation.

Transaction costs: Transactions by credit card or other electronic payment methods incur costs for the merchant, even if the transaction is subsequently cancelled or refunded.

Inventory management: An order generally involves a product in stock. If an order is cancelled after an item has been reserved or removed from available stock, this can lead to inventory management complications, especially if the product is in demand.

Deterring frequent cancellations: Cancellation fees can also act as a deterrent to customers placing orders impulsively, only to cancel them shortly afterwards. This ensures a certain commitment on the part of the customer when placing the order.

Offsetting indirect costs: Managing returns and cancellations can also entail indirect costs for the company, such as customer service, returns management and restocking items.

Shipping costs : When a parcel is shipped to the customer, in addition to the shipped merchandise, there are the costs of the carton, stuffing as well as shipping costs that the merchant assumes.

It is always advisable for customers to carefully read the cancellation and return policies, as well as the general terms and conditions of sale, before placing an order. This will enable you to understand any associated costs and make an informed decision.