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What happens if a customer cancels a SaaS contract?

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We have a question about SaaS contracts: https://docs.aws.amazon.com/marketplace/latest/userguide/saas-contracts.html

Suppose we list a product with monthly contract pricing. What happens if the customer cancels the contract in the middle of the month? Does AWS automatically issue them a prorated refund? E.g., we list a product with $1,000/month contract pricing and the customer cancels on 10th of the month. Does AWS automatically issue the customer a refund for $666.66? Or is there some action required from us? Do we need to use the Standard contract for the prorated refund to happen automatically? Could someone please explain?

1 Answer
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When a customer cancels a SaaS contract in AWS Marketplace, the refund process is not automatic and requires specific actions from the customer:

  1. Customers must request cancellations and refunds through AWS Support within 48 hours of purchase.

  2. If approved, a full or prorated refund is typically processed within 3-5 business days.

  3. When a cancellation is initiated, your SaaS product receives a notification through the Amazon SNS topic for that customer.

  4. You (as the seller) have one hour to send a final metering record for any additional usage charges after receiving this notification.

  5. You should notify the customer from your product that the cancellation is in progress.

If a customer approaches you directly about cancellation, you should direct them to AWS Marketplace to ensure there will be no future charges.

For SaaS contracts specifically, customers can also manage auto-renewal settings through the AWS Marketplace console by accessing "Manage subscriptions," finding the product, choosing "Actions," "View terms," and then "Modify" to cancel auto-renewal if needed.

There is no mention in the documentation about automatic prorated refunds happening in the middle of a contract term without customer action through AWS Support.
Sources
Pricing for SaaS contracts - AWS Marketplace
Modifying an existing public contract - AWS Marketplace

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