Using "Don't restock fulfilled cancellations"

The way this feature works is,

1. when the Shopee order is cancelled,
2. and the Shopee order has already been fulfilled,
3. the Shopify order will not be restocked

This is useful for Cash-on-Delivery (COD) orders. Because if the Shopify order is restocked right away, the stock might not be returned yet. This gives you the option to manually restock the product when the product has been returned. Note that this feature will affect all orders not just COD orders.

This is what the order will look like in Shopify once it is cancelled and there has been no restock.

With this feature enabled the flow will look like this:

1. Initial stock: Shopify 1 stock, Shopee 1 Stock
2. New order arrives: Shopify 0 stock (-1), Shopee 0 Stock (-1)
3. Order is fulfilled: Shopify 0 stock (no change), Shopee 0 Stock (no change)
4. Order is cancelled: Shopify 0 stock (no change), Shopee 0 Stock (no change because Don't restock fulfilled cancellations)
5. Undelivered order comes back to your warehouse and you manually update the stock on Shopify: Shopify 1 stock (+1), Shopee 1 Stock (+1)

Note that with this feature enabled, cancelled orders that are unfulfilled will still be restocked.