Introduction

In circuly, there are two main ways to handle cancellation requests:

• Cancel Order
• Set Subscription Status as Pending Return

While both actions are related to cancelling a customer's intent to keep a product, they serve different operational purposes and have different implications—particularly in how they impact order processing, return handling, and refunds.

This article helps you understand when to use each and why the distinction matters.

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Feature Overview

While both "cancel order" and "set as pending return" help you process cancellations, they serve very different purposes.

Use "cancel order" when:

• The order was placed, but the product hasn’t been shipped yet
• There is no active subscription attached to the order
• You want to cancel the order both in circuly and in your shop system
• You want to issue a refund for the order immediately

Use "set as pending return" when:

• A subscription has already been created
• The product is on its way to the customer or has already been delivered
• You want to stop future recurring payments
• You expect the product to be returned

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When to use “Cancel Order”

You should cancel an order if the customer requests a cancellation before the product has been shipped and before the subscription has been activated. This is often the case if the customer changes their mind shortly after placing an order, or if you offer a cancellation window before fulfillment.

When you cancel an order:

• The order is also cancelled in your shop system (e.g. Shopify, WooCommerce)
• This prevents your fulfilment partners from shipping the product
• You have the option to fully or partially refund the order during cancellation
• The subscription status is automatically set to pending return
• If the product was never sent, you can skip the return process by manually marking it as returned

This flow is especially important if you rely on logistics partners who do not use circuly but manage orders based on what they see in the shop system.

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When to Use “Set as Pending Return”

If the product has already been shipped or a subscription has already been created, you should not cancel the order. Instead, set the subscription status to pending return.

This action signals that:

• The subscription is ending
• The product is expected to be returned
• All future recurring payments will be stopped
• The return workflow is triggered in circuly

This is the correct action when a customer wants to end a subscription mid-term, or at the end of their minimum commitment, and you want to track the return process and update inventory accordingly.

Unlike cancelling an order, setting the subscription to pending return does not trigger a refund and does not cancel the order in your shop system.

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Additional Notes

If you use fulfilment partners who depend on order statuses in the shop system, it’s critical to use “cancel order” when a product hasn’t been shipped. This will ensure they don’t send out an item the customer no longer wants.

If a product has already been sent and the customer wants to return it, setting the subscription to pending return is the right approach. It prevents further billing, begins the return workflow, and ensures that the product eventually comes back and can be marked as returned.

Refund logic also differs:

• Cancelling an order gives you the option to refund during the process.
• Setting a subscription as pending return only stops future payments—it doesn’t trigger any automatic refund.

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What Happens Next

After you cancel an order:

• The order status is updated to cancelled
• The subscription status becomes pending return
• A return can be manually skipped if the product was never shipped
• Refunds (if selected) are processed automatically

After you set a subscription as pending return:

• The subscription is marked as ending
• The return process is started
• Future subscription payments are no longer triggered

Choosing the correct action helps you stay aligned with your internal processes, avoid sending products unnecessarily, and handle customer expectations correctly.

Read more about the return process.

‍Read more about what is pending return.