What is the Cancellation Rate on Shopee?
The cancellation rate on Shopee measures the number of orders canceled compared to the total number of orders placed. This indicator is a crucial part of assessing the business efficiency of shops on the Shopee platform. A high cancellation rate can affect the shop's credibility, decrease customer trust, and may lead to restricted features or account suspension.
Reasons for High Cancellation Rate
- Out of Stock: One of the main reasons leading to order cancellations is the unavailability of products. When customers place orders and the products are sold out, the shop is forced to cancel the order.
- Delayed Shipping: Long shipping times are also a reason for customers to cancel orders. Customers usually expect to receive products in the shortest possible time.
- Product Does Not Match Description: When customers receive products that do not match the description on the sales page, they may request to cancel the order and return the product.
- Change of Customer's Intention to Purchase: Sometimes, customers change their decision after placing an order. This could be because they found a better product or a cheaper price elsewhere.
- System Errors: Technical issues from the Shopee system or payment-related problems can also lead to order cancellations.
Remedies for High Cancellation Rate
- Accurate Inventory Management: Ensure that information about inventory status is continuously and accurately updated. Utilize modern inventory management systems to track the quantity of stock.
- Improve Shipping Service: Partner with reputable shipping companies to ensure fast and accurate delivery times. Offer multiple shipping options for customers to easily choose from.
- Quality Check of Products: Ensure that the product sold matches the description and images on the Shopee page. Avoid misleading customers about the quality and features of the product.
- Better Customer Service: Build a professional customer service team to quickly and efficiently handle customer queries and requests.
- Utilize Technology Support: Implement technology solutions like AI, chatbots to assist customers during the shopping process and order handling.
Conclusion
The cancellation rate on Shopee is an important indicator that shops need to pay attention to and improve. By managing inventory accurately, improving shipping service, checking product quality, providing better customer care, and using technology support, you can reduce the cancellation rate and enhance the credibility of your shop on Shopee.
If your shop has a high cancellation rate, contact Ecomax today for consultancy and implementation of optimal solutions to reduce the cancellation rate and enhance business efficiency on Shopee.
Start today with Ecomax to take your shop to new heights!