If you’re worried this means more penalties or a higher failed rate, don’t panic yet. Let’s break it down properly.

What’s Changing in This Update?

Previously, once an order reached the “Out for Delivery” stage, customers had very limited options to cancel. For sellers, this usually meant that the order would either be delivered successfully or returned as a delivery failure, with no active cancellation request in between.

From 27 January 2026 onwards, TikTok Shop is extending the cancellation window for customers in specific situations. Customers can now request an order cancellation:

• After the Estimated Delivery Date has passed

• Even if the order status is already “Out for Delivery”

• As long as the order has not been successfully delivered

This change applies only to Ship-By-TikTok orders and is meant to address cases where deliveries are delayed beyond the expected timeline, rather than normal last-mile movement.

Who Approves These Cancellations?

Under the updated flow, sellers are not the decision-makers for these cancellation requests.

For Ship-By-TikTok orders:

• Cancellation requests are reviewed and approved by the Logistics Service Provider (LSP)

• Sellers usually do not need to take any action

• If seller review is required, TikTok Shop allows 2 calendar days to respond

Once a cancellation is approved:

• The parcel will be returned to the seller

• The order will be recorded as a failed delivery, not a seller-initiated cancellation

Will This Affect Your SFCR?

This is naturally the biggest concern for sellers and the key point to understand is that this update does not automatically hurt your performance metrics. Your Seller-Fault Cancellation Rate (SFCR) will not be affected, as long as you shipped the order within the Late Dispatch deadline.

SFCR will only be impacted if both of the following happen:

• You shipped the order after the Late Dispatch timeline, and

• The cancellation occurred due to a delivery failure

If you dispatch orders on time, this update does not penalise you, even if a delayed delivery eventually leads to cancellation. The responsibility in these cases sits with logistics performance, not the seller.

Updated Cancellation Timeline

Based on TikTok Shop’s updated order flow, customer cancellations are now handled differently depending on how far the order has progressed in the logistics process. Understanding these stages helps sellers know when cancellations can happen and when they won’t affect performance metrics.

Before the Order Is “In Transit”

(Order Created → Ready to Ship)

At this early stage, cancellation rules remain largely unchanged. Customers are still allowed to cancel their orders before the parcel is handed over to the logistics partner.

• Cancellation is allowed

• No impact on SFCR

• Logistics Service Provider (LSP) approval is not required

This stage is fully within the platform’s normal cancellation flow and does not introduce any new risk for sellers.

After the Order Is “In Transit”

(Order handed to LSP → In Transit → Arrives at Logistics Hub)

Once the order has been collected by the LSP, cancellations are still possible, but additional checks apply. At this point, the logistics partner becomes involved in the approval process.

• Cancellation is allowed

• LSP approval is required

• No SFCR impact, as long as the order was shipped on time

For sellers who dispatch within the Late Dispatch timeline, cancellations at this stage are treated as logistics-related rather than seller-related.

After the Order Is “Out for Delivery”

(Order leaves the final delivery hub)

This is the most important change introduced in the 27 January 2026 update. Previously, cancellations at this stage were extremely limited. Now, customers may still request cancellation, but only under specific conditions.

• Cancellation is only allowed after the Estimated Delivery Date has passed

• LSP approval is required

• No SFCR impact, unless the order was shipped late

• The order will be counted as a failed delivery

This means “Out for Delivery” no longer guarantees that an order is safe from cancellation if delivery is delayed beyond the expected timeline.

Orders That Are NOT Eligible for Cancellation

Despite the extended cancellation window, certain order types remain excluded from these rules. These exceptions are unchanged:

• Shipped-by-Seller orders

• Pre-orders

• Perishable goods

• Virtual products

• Next-day delivery orders

• Instant / 8-Hour / 4-Hour delivery orders

Sellers handling these order types should continue following existing policies.

What TikTok Shop Sellers Should Do Now

This update does not require sellers to overhaul their operations, but it does call for better expectation management, both internally and with customers.

• Continue dispatching orders on time to avoid SFCR impact

• Monitor failed deliveries, as they may increase slightly

• Understand that “Out for Delivery” no longer guarantees zero cancellation risk

• Reassure your team that this update is not an SFCR trap

Ultimately, this change is designed to protect buyers from excessively delayed deliveries, while ensuring that sellers who ship on time are not penalised for logistics issues beyond their control.

Preparing for Platform Changes as a Seller

As TikTok Shop continues refining its delivery and cancellation policies, sellers are once again reminded that platform rules will change, but operational control stays with the seller. Updates like this make timely dispatch, accurate logistics tracking, and structured after-sales handling more important than ever, especially now that cancellations can happen even at the “Out for Delivery” stage when deliveries are delayed.

Managing these situations becomes much more efficient when orders, inventory, and logistics are monitored in one system. Instead of manually tracking cancellations, failed deliveries, and returns across different platforms, sellers benefit from having a clear, real-time view of order status and dispatch performance in one dashboard.

BigSeller is a free, easy-to-use, and highly automated e-commerce ERP built specifically for Southeast Asian sellers. It helps sellers manage product listings, orders, inventory, logistics, and after-sales processes in one place, making it easier to stay organised and compliant as marketplace rules continue to evolve. Since its launch in 2019, BigSeller has been recognised as a Shopee Preferred Partner and an Officially Recommended ERP by TikTok.

If you want to manage TikTok Shop orders, cancellations, and logistics changes with more clarity and less manual work, you can explore how BigSeller fits into your daily operations for free today!

 

(All information in this article is based on the “Order Cancellation” from TikTok Shop Academy.)