The cancellation rate in affiliate marketing refers to the percentage of sales generated by publishers that are canceled or reversed by the end customer before payout. It indicates how many of the originally generated sales can actually be paid out. A low cancellation rate signals that an advertiser handles orders efficiently, provides excellent customer care, offers high-quality products, and delivers reliably. This boosts publisher satisfaction, as they can be confident that their referred sales will be rewarded. On the other hand, a high cancellation rate can negatively impact the advertiser and deter publishers, since many referred sales go unpaid. The cancellation rate is therefore a crucial indicator of an advertiser's performance and quality in the affiliate marketing environment and significantly influences the collaboration between advertisers and publishers.