Order Cancellation: Their Impact and How to Manage Them as a Shopee Seller

Order cancellations are an inevitable part of an e-commerce business, and sellers on Shopee, a leading Southeast Asian e-commerce platform, are no exception. While cancellations can be frustrating for both sellers and buyers, understanding the types of cancellations, their impact on your business and effective management strategies is crucial for Shopee sellers to maintain a positive reputation on the e-commerce platform and ensure long-term success. 

This article delves into order cancellations on Shopee, providing insights into their causes, consequences, and actionable strategies for sellers to minimise their occurrence.

When can an order be cancelled on Shopee?

The ability to cancel an order on Shopee is subject to specific timelines and circumstances. Buyers can initiate a cancellation request at any point before the seller has arranged for shipment. Once the shipment process has begun, cancellation requests are solely at the seller’s discretion. This discretion empowers sellers to manage their inventory and ensure smooth order fulfilment.

In addition to buyer-initiated cancellations, the Shopee system may also automatically cancel orders under certain conditions. For instance, if the seller fails to ship the order within the specified timeframe or neglects to respond to a buyer’s cancellation request within two days, the system will automatically cancel the order. This mechanism protects buyers from unnecessary delays and ensures timely order resolution.

How Order Cancellation Works on Shopee

Order cancellations on Shopee follow a structured process that ensures transparency and fairness for both buyers and sellers. Here’s a breakdown of the cancellation process:

1. Buyer-Initiated Cancellations

• Timeframe: Buyers can request a cancellation within a specific timeframe, typically before the seller has arranged for shipment.
• Seller Approval: Once a cancellation request is submitted, the seller has the authority to approve or reject it. Instant cancellation is not available for buyers once the seller has arranged for order shipment.
• Automatic Cancellation: If the seller fails to respond to a buyer’s cancellation request within two days, the system will automatically cancel the order.
• Refund Process: Upon approval of a cancellation request, Shopee initiates the refund process, ensuring that the buyer receives their money back promptly.

2. Cancellations After Shipping

• Item Return: In cases where the order has already been shipped, buyers may need to return the item in order to receive a refund.
• Seller Cancellation Form: Sellers can initiate a cancellation by filling out the Buyer Initiated Order Cancellation Form.
• Proof of Request: Sellers must provide proof, such as a screenshot, that the buyer is requesting the cancellation.

3. Seller-Initiated Cancellations

• Anytime Before Shipping: Sellers can cancel an order anytime before the item has been shipped.
• Penalties for Self-Initiated Cancellations: Sellers may face penalties for excessive self-initiated cancellations or cancellations that they have requested buyers to make.
• Impact on Performance Metrics: Frequent cancellations can negatively impact a seller’s performance metrics and overall reputation on Shopee.

Impact of Cancellations on Seller Ratings

Order cancellations can have a detrimental impact on a seller’s performance metrics and overall rating on Shopee. High cancellation rates can lead to a lower Shopee Performance Rating, which can affect a seller’s visibility in search results and their eligibility for certain promotional campaigns. Additionally, frequent cancellations can damage a seller’s reputation and erode customer trust. To minimise the negative impact of cancellations, sellers should strive to maintain a low cancellation rate and promptly address any buyer concerns that may lead to cancellation requests.

Communication with Buyers 

Clear and timely communication is crucial for managing buyer expectations and minimising the likelihood of order cancellations. Sellers should respond promptly to buyer inquiries and provide regular updates on order status. Proactive communication can help prevent misunderstandings and address buyer concerns before they escalate into cancellation requests. Additionally, sellers should clearly outline their cancellation policies in product descriptions and shop announcements to ensure transparency and manage buyer expectations.

Shopee Guarantee Protection

 Shopee Guarantee Protection provides an additional layer of security for both buyers and sellers. This program ensures that buyers will receive a full refund if their order is undelivered or not as described. This protection encourages buyers to place orders with confidence, knowing that they have recourse in case of any issues. For sellers, Shopee Guarantee Protection helps maintain customer trust and reduce the risk of negative feedback due to delivery or product discrepancies.

Managing order cancellations

Seamless order management is essential for maintaining a positive reputation and ensuring customer satisfaction on Shopee. Order cancellations, while sometimes unavoidable, can disrupt the sales process and impact seller performance metrics. To effectively manage order cancellations, sellers can utilise the Cancellation page on their Shopee Seller Centre.

Accessing Order Cancellation Requests:

1. Cancellation Page: All order cancellation requests can be accessed on the Cancellation page of your Shopee Seller Centre.
2. To Respond Tab: This tab displays all orders that require your response due to cancellation requests by the buyer. Requests are sorted in order of urgency, with the most urgent requests at the top.
3. Cancelled Tab: This tab contains all orders that have been successfully cancelled, whether by you or automatically by the system.

Responding to Cancellation Requests:

1. Prompt Response: Promptly review and respond to buyer cancellation requests to manage expectations and prevent escalation.
2. Reason for Cancellation: Understand the buyer’s reason for cancellation to address any underlying issues and prevent future occurrences.
3. Approval or Rejection: Decide whether to approve or reject the cancellation request based on Shopee’s guidelines and your own discretion.

Avoiding automated cancellation of orders

Shopee categorises shipments based on their arrangement and dispatch times:

• On-Time Shipment: If you arrange and ship your order within the shipping deadline, the status is considered on-time.
• Late Shipment: If you arrange the shipment within the shipping deadline but ship it within 48 hours after the deadline, the status is considered late. However, if you take more than 48 hours to ship after arranging it, the order will be automatically cancelled.
• Late Arranged and Shipped Shipment: If you arrange the shipment within 24 hours after the shipping deadline and ship it within 48 hours after the shipping deadline, the status is considered late. However, if you ship it more than 48 hours after the shipping deadline, the order will be automatically cancelled.

To avoid automated cancellation, sellers should:

1. Arrange Shipment Promptly: Arrange for shipment within the specified shipping deadline to ensure timely order fulfilment.
2. Choose a Reliable Logistics Partner: Select a logistics partner like Locad that has a proven track record of timely and efficient fulfilment.
3. Drop Off or Hand Over Orders: Drop off or hand over orders to your chosen logistics partner within the prescribed timeframe to initiate the shipment process.
4. Monitor Shipment Status: Keep track of shipment status to identify any delays or potential issues that may lead to late shipment or automated cancellation.
5. Communicate with Buyers: Inform buyers about any delays or potential issues promptly to manage expectations and avoid negative feedback.

What are the Seller’s Responsibilities?

As an integral part of the Shopee marketplace, sellers play a crucial role in managing order cancellations and ensuring a smooth shopping experience for buyers. To maintain a positive reputation and uphold Shopee’s standards, sellers bear the following responsibilities regarding order cancellations:

1. Prompt and Accurate Cancellation Processing: Sellers are obligated to process cancellation requests promptly and accurately. This involves carefully reviewing the cancellation reasons provided by buyers and making informed decisions on whether to approve or reject the requests.
2. Fee Considerations: Sellers should be aware that certain cancellation scenarios may incur fees on their end. It is important to familiarise themselves with Shopee’s cancellation policies to avoid any unexpected charges.
3. Responsive Communication: Sellers are expected to respond to buyers’ cancellation requests within a reasonable timeframe. Shopee grants sellers one day to respond to these requests. Prompt communication is crucial for managing buyer expectations and preventing unnecessary delays.
4. Active Request Monitoring: Sellers are encouraged to actively monitor their buyers’ cancellation requests and respond accordingly in a timely manner. This proactive approach helps maintain a positive seller rating and prevents automated cancellation by the system.

Closing Thoughts

Order cancellations are an inevitable aspect of e-commerce, and Shopee has implemented a structured system to manage them effectively. By understanding the types of cancellations, their impact on seller performance, and strategies to minimise their occurrence, sellers can maintain a positive reputation and ensure long-term success on the platform.

In addition to the tips provided in this article, Shopee sellers in Southeast Asia can also utilise Locad’s return pickup service to streamline the return process for buyers and minimise the hassle for sellers. With Locad’s convenient and efficient return pickups, sellers can focus on providing excellent customer service and building a thriving Shopee business.

If you are a Shopee seller, take charge of your order cancellations and enhance your customer experience with Locad’s return pickups. Visit our website to learn more and start enjoying the benefits of a seamless returns process