> For the complete documentation index, see [llms.txt](https://help.palmstreet.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.palmstreet.app/seller/shop-guidelines/set-restocking-fees-for-buyer-initiated-cancellation.md).
# Set restocking fees for buyer-initiated cancellation
Palmstreet enables eligible reptile sellers to configure restocking fees for buyer-initiated order cancellations. This feature is particularly beneficial for sellers managing live or time-sensitive inventory, where cancellations may result in material loss or added logistical complexity.
When enabled, this feature allows sellers to:
* Define and apply a restocking fee (5%–15%) for cancellations initiated by buyers.
* Ensure buyers are notified of applicable fees both before purchase and during the cancellation process.
* Automate refunds and order status updates, reducing manual effort and processing delays.
### How to Configure a Restocking Fee
1. Go to **Settings > Shop policies > Returns & exchanges** in the Palmstreet app
2. Toggle **“Charge restocking fee”** ON
3. Set the desired fee percentage (5%–15%)
**Note:** The restocking fee applies **only to buyer-initiated cancellations** submitted **before shipment**, and is calculated **based on the item subtotal only**, excluding shipping. If the seller initiates the cancellation, no restocking fee is applied and a full refund is issued.
### Buyer-Facing Visibility
To ensure transparency and reduce disputes, the configured restocking fee is shown to buyers in the following locations:
* **Shop Guidelines Page**
* **LIVE Show** – included under “Shipping & Policies”
* **Listing Pages** – within the “Returns and Exchanges” section
During the cancellation request process, buyers are required to:
* Select a cancellation reason
* Review the order cancellation summary, including the applicable restocking fee
### Seller Notifications and Response Options
Once a cancellation request is submitted:
* A notification is sent via **Message.**
* Tap **“Review request”** in the message preview to open the request and respond.
* Alternatively, tap the item to open the **Track order** page for full order details. Then select **“Review cancellation request”** to proceed.
**Note:** Selecting **“Cancel order”** will initiate the seller-initiated cancellation flow, which issues a full refund and does not apply a restocking fee.
