> 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 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%–25%) 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%–25%, default is 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.

<figure><img src="/files/x3jpGNz4oipkURHr1uPz" alt=""><figcaption></figcaption></figure>

### 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

<figure><img src="/files/3Pha6z28Vp2jZCcK5ktu" alt=""><figcaption></figcaption></figure>

### 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.

<figure><img src="/files/wv9sNjCIJErlftwKUZVW" alt=""><figcaption></figcaption></figure>