Tips to Avoid Penalties and Account Suspension for Lazada Sellers Malaysia

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As one of the nation’s foremost online marketplaces, Lazada has redefined how Malaysians shop and presented lucrative opportunities for entrepreneurs and businesses to thrive. Lazada continues to enjoy the spotlight, as eight out of ten shoppers in the region use the platform. However, in this digital marketplace, success hinges on more than just offering products; it revolves around the health of your seller account.

Your Lazada seller account is your digital storefront and how you reach millions of eager online shoppers across Malaysia. But, like any thriving marketplace, it comes with its own set of rules, guidelines, and challenges. The health and reputation of your seller account are pivotal to your long-term success on Lazada.

This comprehensive guide explores the intricacies of maintaining a clean and thriving seller account. We will highlight the critical aspects of why seller accounts face suspension and suspension periods and demystify Lazada’s penalty points system and how to initiate account recovery. Furthermore, we will equip you with a range of essential tips and strategies to keep your seller account not only afloat but thriving in this competitive digital landscape. So, let’s dive in!

What are Lazada’s Sellers Compliance Policy?

Lazada’s seller compliance policies are a framework of rules that sellers on the platform must adhere to. These policies are enforced to protect buyers and guarantee a high-quality shopping experience. Key compliance policies outline regulations for product listing, fulfilment, customer service and fair trade. 

Why does Lazada penalise Sellers on the platform?

Lazada actively monitors sellers on the platform for compliance with its seller policies. This helps the platform eliminate behaviour misconduct and ensures that sellers use the platform fairly to give their shoppers a positive shopping experience. When sellers breach Lazada’s compliance policy, they incur penalty points. Consistent accumulation of these penalty points will impact the seller’s reputation and may lead to severe actions like suspension.

Reasons for Lazada Seller Account Suspension

Maintaining a thriving seller account on Lazada Malaysia is a delicate balancing act, and one misstep can lead to the suspension of your account. Understanding the core reasons behind account suspensions is the first step towards safeguarding your business. These reasons typically fall into two main categories: Policy Violations and Performance Metrics.

Policy Violations

  1. Selling Prohibited or Counterfeit Items

Lazada maintains strict policies regarding the types of products that can be sold on its platform. Attempting to list prohibited items or counterfeit goods is a surefire way to land in hot water. This includes items such as illegal drugs, weapons, and fake designer products. Always ensure that your product offerings align with Lazada’s guidelines to avoid potential suspension.

  1. Violating Lazada’s Content and Product Listing Policies

Lazada has specific rules governing how products should be listed and described. This varies from product description, quality, categorisation, dimensions, pricing and more. Violating these guidelines by using inaccurate or misleading product information, improper categorisation, or deceptive tactics can trigger account scrutiny. Make sure your product listings adhere to Lazada’s content and product listing policies at all times.

  1. Infringing on Intellectual Property Rights

Lazada is committed to protecting intellectual property rights. If you sell products that infringe on trademarks, copyrights, or patents, you risk legal action and account suspension. Prioritise thorough research and verification to ensure your products do not violate intellectual property rights.

Performance Metrics

  1. Poor Order Fulfillment

Lazada expects its sellers to fulfil customer orders promptly and efficiently. Consistently failing to meet shipping and fulfilment commitments can lead to account suspension. To avoid this, streamline your order processing and choose strategically located warehouses for faster dispatch. Consider choosing top Lazada fulfilment partners in Malaysia who can manage your shipping operations for maximum efficiency.

  1. Unsatisfactory Delivery Performance

Delivery is a critical component of customer satisfaction. If your orders arrive late, damaged, or with missing items, it reflects poorly on your seller account. Focus on improving delivery performance, and consider partnering with reliable last-mile logistics providers for quicker deliveries and enhanced customer experience.

  1. High Order Cancellation and Return Rates

Frequent order cancellations and returns not only strain Lazada’s resources but also erode customer trust. High rates of cancellations and returns can result in account suspension. Implement effective quality control measures to minimise these issues.

  1. Low Seller Ratings and Bad Customer Feedback

Seller ratings and customer feedback directly impact your seller account health. A consistent pattern of low ratings and negative feedback can lead to suspension. Prioritise exceptional customer service, address customer concerns promptly, and strive for positive reviews to maintain a stellar seller reputation.

Understanding the Lazada Penalty Points System

Lazada’s Penalty Points System is designed to track and penalise sellers engaging in activities that contravene the platform’s policies. Each violation is assigned a specific number of penalty points, which vary in severity based on the nature of the infringement. These points serve as a clear indicator of your account’s health and compliance with Lazada’s rules.

  1. Minor Policy Violations: These violations, such as minor content policy infractions or minor policy deviations, typically result in a lower number of penalty points. Points may range from 5 to 20, depending on the specific violation.
  2. Major Policy Violation: More significant infractions, such as selling prohibited or counterfeit items, could lead to a higher number of penalty points. Points for major violations can range from 30 to 100 or more, depending on the severity.
  3. Performance-Related Violations: Poor order fulfilment, unsatisfactory delivery performance, high order cancellation and return rates, and low seller ratings can also accrue penalty points. The exact point values for these violations may vary but are typically in the range of 10 to 50 points per violation.

The crux of Lazada’s Penalty Points System is simple: accumulate too many points, and your seller account faces suspension. The threshold for suspension may vary, but once your account crosses that critical point, Lazada may take actions ranging from temporarily suspending your account to permanently banning you from the platform.

Therefore, sellers must avoid major violations and proactively address minor policy and performance issues to maintain a healthy account status. In the subsequent sections, we will explore the suspension periods, the account recovery process, and valuable strategies to prevent account suspension on Lazada Malaysia.

Suspension Period and Consequences

A suspension notice from Lazada can impact the revenue you make through your e-commerce operations. Understanding the duration of suspension periods and the accompanying consequences is vital for any seller. This suspension period can either be permanent or temporary. Read along as we look at both and examine the consequences of a ban.

  1. Temporary Suspension: Temporary suspension is the more common form of account restriction. It can range from a few days to several weeks, depending on the severity of the violations or issues that led to the suspension. During this period, you lose access to your seller account, your product listings are taken offline, and you are unable to conduct business on Lazada.
  2. Permanent Suspension: In rare and extreme cases, Lazada may opt for permanent suspension. This typically happens when sellers repeatedly violate policies despite warnings and penalties or engage in fraudulent activities. A permanent suspension means the end of your selling journey on Lazada, with no further ways to recover your account.

Suspension, however, isn’t the end of the road for sellers on Lazada. It comes with its own set of issues. Some of them have been discussed below.

  1. Loss of Revenue: The most immediate consequence of suspension is the loss of revenue. With your account inaccessible to shoppers and listings removed, you’re unable to generate sales on Lazada. This can have a significant financial impact, especially if you rely heavily on the platform for your e-commerce operations.
  2. Customer Trust Erosion: Suspension can erode the trust of your existing and potential customers. They may view the suspension as a sign of unreliability and may choose to shop with other sellers on the platform. Rebuilding this trust can be challenging and time-consuming.
  3. Disruption to Operations: Suspension disrupts your business operations and supply chain. You may need to deal with pending orders, refunds, and customer inquiries, which can be logistically challenging during the suspension period.
  4. Impact on Your Brand: If you’ve built a brand presence on Lazada, suspension can damage your brand’s image. It’s crucial to take swift action to rectify the issues that led to the suspension and communicate with your customers transparently to mitigate potential long-term damage.

Understanding the duration of suspension periods and their consequences underscores the importance of complying with Lazada’s seller rules and regulations to avoid account suspension. In the subsequent sections, we’ll explore the account recovery process and strategies to prevent suspension. Remember, it’s far easier to maintain a healthy seller account than to recover from a suspension.

Account Recovery Process

Facing a suspension on Lazada is a challenging ordeal, but  Lazada provides a process for account recovery, offering sellers an opportunity to rectify their mistakes and get back on track. Here’s a step-by-step guide on initiating the account recovery process:

Step 1: Self-Assessment and Issue Identification

Before taking any action, conduct a thorough self-assessment of your account. Identify the specific issues that led to the suspension. This could include policy violations or performance-related problems. Understanding the root causes is essential for a successful recovery.

Step 2: Review Lazada’s Suspension Notice

Carefully review the suspension notice sent by Lazada. It often contains essential information about the reason for suspension and any specific actions required for recovery. Make a note of any deadlines mentioned in the notice.

Step 3: Rectify Violations and Improve Performance

Address the issues that led to the suspension promptly. Rectify policy violations, such as removing prohibited items or fixing content and product listing issues. If the suspension was due to poor performance metrics, take steps to improve your order fulfilment, delivery, cancellation rates, and customer feedback.

Step 4: Prepare Your Appeal

To initiate the account recovery process, you’ll need to submit an appeal to Lazada. This appeal should be concise and professional and address the issues identified in the suspension notice. Include the following in your appeal:

  • A clear acknowledgment of the issues that led to the suspension.
  • An explanation of the actions you’ve taken to rectify the problems.
  • Any evidence or documentation that supports your case, such as invoices, product authenticity certificates, or shipping records.
  • A commitment to adhering to Lazada’s policies moving forward.

Step 5: Submit Your Appeal

Submit your appeal through Lazada’s designated channels, as mentioned in the suspension notice. Ensure that all required documents and evidence are attached to your appeal. Double-check the accuracy and completeness of your appeal before submission.

Step 6: Await Lazada’s Response

The timeline for account reinstatement in Malaysia varies depending on the complexity of the issues and the responsiveness of Lazada’s support team. In some cases, you may receive a response within a few days, while more complex cases may take longer.

Step 7: Act on Lazada’s Feedback

Lazada may respond to your appeal with additional requests for information or clarification. Be responsive and provide the requested information promptly. Demonstrating cooperation and a genuine commitment to resolving the issues can expedite the recovery process.

Step 8: Account Reinstatement

If Lazada determines that your appeal is successful and the issues have been resolved, your account will be reinstated. You’ll regain access to your seller dashboard, and your product listings will be restored. It’s essential to maintain a clean and compliant seller account moving forward to avoid future suspensions.

The timeline for account reinstatement can vary widely, from a few days to several weeks, depending on the complexity of the case and Lazada’s workload. Being patient and diligent throughout the process is crucial, as thoroughness is key to a successful recovery.

Tips to Avoid Suspension

Now that we have outlined all the reasons one can get suspended and detailed the recovery process, here are some best practices a Lazada seller can use to prevent account suspension, ban or other penalties.

  • Compliance with Lazada Policies: Stay informed about Lazada’s policies and ensure your product listings, content, and business practices align with their guidelines. Regularly review and update your listings to maintain compliance.
  • Efficient Order Fulfillment and Customer Service: Prioritise timely order processing and shipping to meet customer expectations. Ensure you opt for warehouses and fulfilment centres closer to where your customers are. Enlist the help of 3PLs with experience offering e-commerce fulfilment in Malaysia. Minimise order cancellations and returns by providing exceptional customer service and addressing inquiries promptly.
  • Quality Control and Product Authenticity: Ensure the authenticity and quality of the products you sell. Verify your product sources and maintain high standards to build trust with customers and Lazada.
  • Proactive Monitoring and Reporting: Keep a vigilant eye on your account metrics and sales performance. Report any suspicious or policy-violating activities by competitors or other sellers to Lazada’s support team.
  • Continuous Improvement: Consistently strive for better seller ratings and positive customer feedback. Seek feedback from customers to identify areas for improvement and make necessary enhancements to your operations.

Conclusion

In the Lazada marketplace, success is a delicate balancing act, and the vitality of your seller account plays a pivotal role. As we’ve explored in this comprehensive guide, the journey to safeguarding your success on Lazada begins with a deep understanding of the reasons for seller account suspension. Whether it’s policy violations or performance-related issues, knowing the pitfalls is your first line of defence.

The Lazada Penalty Points System, as we’ve discussed, serves as a critical source, alerting you to areas needing immediate attention. Accumulating too many points can lead to account suspension, affecting your revenue, customer trust, and overall business operations.

In the event of suspension, the path to recovery involves a methodical approach. We’ve provided a step-by-step guide emphasising the importance of rectifying violations, preparing a compelling appeal, and cooperating with Lazada’s support team. Patience and diligence are your allies in this process.

However, the ultimate goal is not just to recover from suspension but to prevent it in the first place, for which we’ve offered appropriate best practices. And if it is best-in-class fulfilment that you wish to ensure, Locad is your trusted partner for optimising your e-commerce operations. With Locad, you gain access to cutting-edge technology and expertise to streamline your supply chain and enhance order fulfilment – all while ensuring seamless compliance with Lazada’s policies.

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