Shopee Account Health: Your Guide to Maintaining a Thriving Business

E-commerce sellers have to comply with regulations on Shopee that tie back to shop performance, fulfilment, operational efficiency and fair selling. These regulations ensure that shoppers receive an exceptional buying experience on the platform. As a seller with a Shopee shop, Have you ever wondered how to check if your Shopee shop complies with the platform’s selling regulations and enjoys a good performance score?

Shopee’s Account Health tab is where you’ll find all your answers. ? The Account Health of your Shopee shop is a crucial dashboard that provides a snapshot of your overall performance, influencing everything from seller visibility, performance checks, target achievement all the way to account suspension.

Measured and updated weekly, your Account Health reflects your adherence to Shopee’s performance targets and penalty points. This guide will delve deeper into the world of Account Health, exploring its impact, common pitfalls, key metrics, and essential best practices to ensure you stay ahead of the game.

Impact of Bad Account Health on Shopee

If the Account Health of your Shopee shop is low, it can significantly impact your seller journey on the platform. Here’s a glimpse of the impact of a low account health score:

• Account Freeze: If your Account Health score falls below a certain threshold, your account may be frozen. This means your listings will be hidden from potential buyers, effectively halting your sales and putting a brake on your business growth. Imagine your storefront being closed with no customers walking in – that’s the impact of an Account Freeze.
• Account Ban: In extreme cases, Shopee may resort to banning your account altogether. This would result in complete loss of access to your seller account and all its data.  And you will be instantly locked out of your own business account.

These penalties can be devastating for your business, leading to lost revenue, damaged reputation, and hindered growth. They can be a major setback, putting you back to square one on your Shopee journey.

Reasons for Penalising Your Shopee Account

Maintaining good Account Health is a constant balancing act, requiring careful adherence to Shopee’s policies and guidelines. Unfortunately, some actions can trigger penalties and negatively impact your score. Here are some common reasons why your Shopee account might face penalisation:

1. Failure to Comply with Shopee Policies

Non-compliance with Shopee’s policies and guidelines is a recipe for disaster. This includes everything from late shipments to inaccurate product descriptions. Every policy violation adds points to your penalty score, pushing you closer to potential account freezes and bans.

2. Violation of Intellectual Property Rights

Selling counterfeit or pirated products is a serious offence on Shopee. Respecting intellectual property rights is essential, and failure to do so can result in severe penalties, including immediate account termination.

3. Violating Shopee’s Prohibited Items List

Shopee has a clear list of prohibited items that cannot be sold on its platform. Selling these items can lead to account penalties, including listing removal and account suspension. It’s crucial to familiarise yourself with this list and avoid any prohibited items altogether.

4. Counterfeit or Inauthentic Products

Selling counterfeit or inauthentic products tarnishes both your reputation and the trust of buyers on Shopee. This is strictly prohibited and can result in severe penalties, including account termination.

5. Inaccurate Product Information

Providing false or misleading information about your products is a major breach of trust. It can lead to buyer complaints and, ultimately, account penalties. Ensuring accurate and transparent product information is key to maintaining a healthy account.

6. Late Shipment or Failure to Ship Orders

Failing to ship orders on time or at all causes frustration for buyers and impacts your account health. Consistent delays or non-shipment can lead to penalties, negatively impacting your seller performance.

7. High Order Cancellation

A high rate of order cancellations indicates potential issues with your products, pricing, or shipping. It can lead to penalties and negatively impact your buyer satisfaction rate. Address these concerns to improve your service and avoid penalties.

Metrics Used to Study Shopee Account Health

Your Account Health is based on a set of key performance indicators (KPIs) that provide a clear picture of your seller performance. Understanding these metrics and their impact on your Account Health is crucial for taking control and achieving success on Shopee.

Here are some of the most important metrics that determine your Account Health:

1. Seller Rating: This reflects your overall customer satisfaction with your products and services. A high seller rating signifies excellent customer experience and contributes positively to your Account Health.
2. Order Defect Rate: This metric measures the percentage of orders with cancellations, returns, and refunds. A low order defect rate indicates smooth order fulfilment and happy customers, contributing to a healthier account.
3. Late Shipment Rate: This metric tracks the percentage of orders shipped past the promised deadline. Punctuality is crucial for customer satisfaction, and a low late shipment rate is essential for a healthy Account Health.
4. Cancellation Rate: This metric measures the percentage of orders cancelled by the seller, often due to stock issues or fulfilment problems. A low cancellation rate indicates efficient order management and a positive impact on your Account Health.
5. Customer Feedback and Reviews: While not directly impacting your Account Health score, customer feedback and reviews play a crucial role. Positive reviews boost your seller rating and build trust, while negative feedback can damage your reputation and potentially trigger penalties.

How to Check Your Shopee Penalty Points?

Maintaining a healthy Account Health is an ongoing process, and it requires regular monitoring. Fortunately, Shopee provides you with easily accessible tools to track your progress. Knowing where you stand and identifying areas for improvement is key to maximising your success.

There are two ways to check your penalty points on Shopee:

Using the Seller Centre:

1. Log in to your Seller Centre account.
2. Click on the “Account Health” page.
3. Under “My Penalty,” you will see your current penalty points, along with a breakdown of your recent violations.

Using the Shopee App:

1. Open the Shopee app.
2. Go to the “Me” tab.
3. Select “My Shop.”
4. Click on “Shop Performance.”
5. Under “Account Health,” you will see your current penalty points.

By regularly checking your penalty points, you can stay ahead of potential issues and take proactive steps to improve your compliance and performance. Remember, a healthy Account Health is a testament to your dedication to providing excellent service and building a successful business on Shopee.

Best Practices for Maintaining a Healthy Shopee Account

Now that you understand the importance of Account Health and the factors that influence it, let’s delve into the best practices for maintaining a thriving seller account on Shopee. By following these guidelines, you can ensure your Account Health remains robust, allowing you to focus on maximising sales and achieving your business goals.

1. Provide Accurate Product Information: This is the foundational step for building trust and customer satisfaction. Ensure your product descriptions, photos, and titles are clear, honest, and accurate. Avoid misleading information or exaggerated claims, as this can lead to negative feedback and potential penalties.
2. Monitor Performance Metrics Regularly: As discussed earlier, key metrics like Seller Rating, Order Defect Rate, and Late Shipment Rate play a crucial role in your Account Health. Actively monitor these metrics and identify areas for improvement. This proactive approach allows you to address issues before they escalate and negatively impact your account.
3. Maintain Account Rating: Your Seller Rating is a crucial indicator of customer satisfaction. Encourage positive feedback by providing excellent service, resolving customer issues promptly, and exceeding expectations. Remember, a high Seller Rating boosts your visibility and attracts more buyers.
4. Manage Inventory and Avoid Any Shipping Delays: Stock control is essential for maintaining a healthy Account Health. Ensure you have sufficient inventory to fulfil orders and avoid overselling products. Remember, timely shipping is crucial for customer satisfaction. Implement efficient order management processes using 3PLs such as Locad to avoid delays and cancellations.
5. Avoid Fake Reviews: Don’t be tempted to manipulate reviews or feedback. Encourage genuine customer reviews by providing excellent service and building trust. Fake reviews can be easily detected and lead to significant penalties, damaging your reputation and undermining your business.
6. Improve Customer Experience: Make customer satisfaction your top priority. Respond to inquiries promptly, address complaints efficiently, and go the extra mile to ensure a positive shopping experience. Remember, happy customers translate to positive reviews, higher ratings, and a thriving business.
7. Comply with All Shopee Policies: Familiarise yourself with Shopee’s policies and regulations. Adherence to these guidelines is essential for maintaining a healthy Account Health. Avoid engaging in prohibited activities or listing banned products, as this can result in severe penalties, including account suspension.

Closing Thoughts

Maintaining a healthy Account Health is not just about avoiding penalties; it’s about building a successful and sustainable Shopee business. By understanding the metrics, best practices, and key pitfalls discussed in this guide, you’re equipped to navigate the platform effectively. Remember, your commitment to providing excellent customer service, adhering to Shopee policies, and continuously improving your performance will pave the way for long-term success and unlock the full potential of your Shopee journey. So, take control of your Account Health, embrace continuous improvement, and watch your business flourish on the Shopee platform.