1. Introduction: Generally no businessman likes to cancel the order once placed, Due to this business relations spoil and prestige of firm is also affected. Inspite of this under unavoidable conditions, sometimes orders have to cancelled partly or completely.
2. Circumstances of cancelling order : They are as below
(1) Mistake in taldng stock: If due to mistake of stor keeper, order has been placed inspite of having enough stock then the order placed needs to be cancelled.
(2) Delivery not on time : If after placing an order and giving regular reminder, goods are still not delivered on time then the customers may cancel the order placed.
(3) Reduction in Demand : If due to any unaccounted reason the demand for the product starts falling, then the customer is left with no choice but to cancel the order.
(4) Workers Strike: The seller has to write cancelletion letter when there is workers strike and production has came to a standstill.
(5) Accidents or Natural calamity: If there is fire or any accident in factory or due to any natural calamity the production is not taking place then seller has to cancel the order.
In the above mentioned circumstances if the order has to be cancelled then enough care should be taken while writing letters of cancelletion as this should not affect business relations.
3. Points to be considered while writing Letters of Cancelletion of Order : They are as follows:
(1) Fast Action: If order placed has to be cancelled then fast action should be taken. The seller should be informed through Email or Phone and then the letter should be written to support the telephonic talk.
(2) Resons for Cancellation : To maintain helthy business relations, a valid reason for cancelletion of order should be written in the letter. Reason can be mistake of an employee, having sufficient stock, natural calamity or if firm needs to remain closed for a certain time period due to unavoidable circumstances.
(3) Reasons for cancellation from seller: Seller needs to cancel order when there is shortage of raw material or workers are on strike, transport strike, non payment of previous dues, natural calamity etc.
(4) You attitude : The letter should always be written with you attitude, which maintains the respect of the other party and helps to hold our prestige.
(5) Substitute Arrangement : The customer has to face difficulty when seller carxels the order due to unavoidable circumastances. Seller should suggest some alternative arrangement or substitute. For e.g. big size glasses are not available then in the meanume small size glasses can be offered or when Economics textbook is not available then Kumar Prakashan digest can be offered.
(6) To inform new dates : When seller cancels the order then he should inform in the letter that when would the products be available next.
(7) Request for Co-operation : Letters of cancellation should start with an apology. It should end with the assurance that full Co-orperation will be given in the future.
4. Conclusion : Care should be taken in letter of cancellation that they dont sound negative. If order has been cancelled due to any misunderstanding then regret should be shown and assurance should be given that this mistake will not be repeated again in future.