@lsembroidery
"One order was cancelled by the customer...". Did you actually cancel the order or just issue a full refund? Is that order still showing on your open orders as overdue now? If so then you need to cancel the order. Simply issuing a full refund does not cancel the order. For future reference if you cancel the order first it will do both actions for you (cancel and issue full refund).
It may be a good idea to read the info they provide about the program if the star is important to you. Etsy is pretty clear about what's required for the star seller program.
It's right there on the Star Seller page in shop manager. Just go to shop manager > star seller then scroll a bit down the page. It says Know what counts (recommended read) then says "Ship on time, with tracking- Every order should include tracking."
It's also in the Help Center info about the star seller program here
https://help.etsy.com/hc/en-us/articles/4403058372503-How-to-Become-a-Star-Seller?segment=selling
scroll down to the 'On time shipping & tracking bit'
"Shipping at least 95% of your orders on time with tracking will earn you the Smooth shipping customer service badge."
"Orders of a certain value will need to have tracking or a shipping label purchased on Etsy."
"What if I offer local pick-up or delivery for my items?-At this time, orders that don't have tracking because they are delivered or picked up in person will be considered shipped without tracking, and will not meet the Star Seller criteria for shipping. "
"Seems unfair it counted against me." Fairness isn't really part of the equation. The program details are right there for you to read. If your numbers don't fit within the required parameters of the program then you do not get the star. It's an automated system. A computer can't/won't decide fairness. It simply goes by the data provided.
