What will happen if Japan cancels the Olympics due to the conovirus? will it get relocated and rescheduled?

In 2020 it might not be possible

If cancelled then it means the organizers are going to lose billions of dollars.

Japan won't cancel the Games, the IOC will. Japan will have to wait for another opportunity. The next Summer games will be in Paris and organizing and planning are already underway. These cities spend enormous money on getting facilities ready and is some cases building them just for the Games. 2028 has already gone to Los Angeles. The 2032 site is to be selected in 2021 and Japan would not be expected to be a candidate, but if they lose this one, 2032 could go to them.

If the Tokyo Olympics are cancelled, there will be no Summer Olympics this year.  They will not be relocated or rescheduled.  

Think of it this way: Tokyo has about 40 stadiums scheduled to be used from July 22 (?) to Aug 9.  (Not sure of the start date: some events take place before the Opening Ceremony.)  It has accommodations for about 20,000 athletes, coaches, and officials.  Then, there's the Paralympic Games from Aug 25 - Sept 6.  

That's 40 venues with nothing else scheduled for 7 weeks.  No other city is going to have that availability.  It's Tokyo or bust.

The IOC has already said that if the summer Olympics gets postponed, it will be canceled and not rescheduled.

There's too much logistical work that has to take place. Yes- FIFA moved the 2003 Women's World Cup from China to the United States over concerns about SARS, but you're talking one sport with less than 500 athletes. The summer Olympics will have over 10,000 athletes in venues all over the country.

It could be rescheduled but if it's cancelled in Japan due to Coronavirus issues, it's not likely to be relocated. Coronavirus is pretty much throughout the world and large crowds would be an issue anywhere as well as risks traveling to get there.

They might have to reschdule it, they won't relocate it because it's too complicated to just move or relocate an event like this.

I believe they will postpone it for a year

It probably will be. I forgot about the Olympics. It might just get moved to a different country, but at this point, nowhere is really safe. It'll likely get rescheduled to next year and probably stripped away from Japan and moved some place away from China.

What is the 'conovirus'?