Tips to Avoid Penalties for Shopee Sellers in the Philippines

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Shopee is an e-commerce juggernaut in the Philippines, commanding a respectable lead over the pioneering e-commerce platform Lazada with over 76 million monthly web visits over the latter’s 39 million. 

But there have been incidences where sellers have abused their privileges on Shopee, failing to fulfill orders, being abusive to customers, or selling counterfeit products, among others. Such seller behavior often led to problems for Shopee itself as many customers associate their sellers’ services with them. 

These incidents are not tolerated, and Shopee has taken steps to make sure their sellers comply with guidelines aimed at curbing bad behavior, as well as keeping their platform a safe environment for both sellers and buyers. 

Know what to avoid

There are actions on Shopee that you most definitely need to avoid if you want to continue operating your shop on this big platform. Every one of these activities, as listed by Shopee, may result in your seller account being suspended. Beware:  

  1. Repeated violations on Shopee Feed and/or Shopee Live – This alone can be on a separate list. Shopee Feed rules identify violations such as duplicated and junk feeds, promoting your contact details on social media platforms, promoting your external website, promoting illegal or counterfeit products, and promoting nude or pornographic material. 
  2. Empty parcel fraud – It’s definitely a no-no to send a buyer a parcel that does not have the expected item. Whether this is done as a joke or by accident, repeated violations can get the erring shop banned from the platform. 
  3. Brushing fraud – This is when sellers create fake orders to boost their own ratings. This technique is commonplace, but Shopee has been cracking down on these violations. 
  4. Promotional abuse – While promo abuse is more for buyers who abuse the availability of promos, some sellers may participate in the abuse just to generate more ratings and purchases in their shops. It’s also possible that companies would try to ruin competitors by abusing their promos. 
  5. Scam behavior – Other forms of deceitful activities as a seller are largely prohibited on Shopee. 

Shopee’s Seller Penalty Points

Shopee created the Point Penalty to help sellers track their performance and point out areas that need improving. The end goal is to ensure that the seller operates optimally and to avoid straying from the platform’s original guidelines and policies. 

The Seller Penalty Point is found in the seller’s account in the Seller Centre section under the Account Health menu (more on this section later).

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Remember that NFR means “non-fulfillment rate” or the percentage of orders from the shop’s total orders that were either canceled or returned in the past 7 days. On the other hand, LSR, or “late shipment rate”, means the percentage of orders from the total orders that were shipped late in the past 7 days. 

Part of Shopee’s guide on maintaining a good account with them is to avoid penalty points by ensuring to do the following: 

  1. Avoiding Listing Violations
  2. Fulfillment of Orders
  3. Customer Service
  4. Customer Satisfaction 

Penalties and punishments

If you accumulate just enough penalty points based on the next table, then your seller privileges would be suspended. 

These penalties will be lifted after 28 days. Once the penalties have been lifted, you gain back your seller privileges. However, you will be required to maintain a good account with Shopee. 

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So what happens if you abused Shopee’s policies? Shopee can do two things: 

  1. Account freeze – You cannot conduct transactions, but will still be able to access your frozen accounts and send chat messages.
  2. Account ban – You are unable to access any of your banned accounts.

Whether your account is banned or frozen depends on the severity of the violation. Even with the 28-day suspension rule, Shopee may decide to extend it indefinitely if you have made more violations. 

If you’ve gained a high number of penalty points, you will also be given a limit on your listings, sometimes going as low as 50 items. And if you’re a repeat offender, your accounts could be frozen and you cannot access anything. 

The penalty points you gained will be kept by Shopee within a quarter of the year. Good thing they reset the penalty points back to zero at the start of the next quarter. 

You may view more about Shopee’s penalty points and punishments by clicking here.  

Think you didn’t do anything wrong? Appeal!

Some sellers may think the penalties given to them are unfair or unwarranted. The good thing is that Shopee allows you to make an appeal. 

You can contact their Customer Service team or the Relationship Manager assigned to your account if you wish to contest or request quick resolutions. If successful, your account privileges will be returned. However, never take advantage of this. 

You can send an appeal by filling up this form on Shopee.

Always be a good seller and know your account’s health

As a seller, you have the responsibility to know how healthy your account is. Any good business would take every step to ensure that their products satisfy the customer and that is what Shopee demands from its sellers. 

Remember these four areas that Shopee has laid out if you want to keep your seller account healthy: 

  1. Avoid Listing Violations – Follow Shopee’s guidelines and prohibited listings, counterfeit, and IP infringement listings, and spam listings 
  2. Fulfillment of Orders – Ship your orders on time and in good condition to avoid order cancellations and returns 
  3. Customer Service – Respond promptly while treating every shopper with respect and care
  4. Customer Satisfaction – Provide your buyers with an ideal shopping experience for high ratings  

Just always take good care of your customers in order to stay within the good graces of Shopee. Remember that these good practices apply to any business, whether online or traditional. Such actions will build good relationships with your customer and may even boost your branding. 

Happy selling!

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