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Cancelling an order can only be done before the product is shipped or "fulfilled" as our system calls it. Cancelling an order will automatically refund the customer in the full amount - including any shipping or taxes paid.
Refunding an order is really more like returning an order. You can only use our refund tool after an order has been shipped or fulfilled. This tool allows you to refund part of an order (cancelling an order only refunds the full amount). For example, if someone ordered two products, but only wanted to return one, you could refund them for the product they are returning only. Our system also gives the choice whether or not to refund the shipping.