Recently, Shopee has been continuously updating its policies to enhance the credibility and shopping efficiency of both its sellers and platform. Notable policy updates include: updates on buyer information protection, new SLA processing time updates, and updates on product quality rating criteria. How do these changes affect sellers? Join UpBase Blogs to explore the details in this article.
New Policy Updates and Changes
Updates on Buyer Information Protection
With this new policy, sellers/brands need to ensure:
- Only use Buyer information to process and fulfill orders on the Shopee e-commerce platform.
- Do not use Buyer information for any other purposes outside the platform, such as tracking, harassing, insulting, invading the privacy of Buyers, or inciting others (whether explicitly or implicitly) to do so with Buyers or their acquaintances.
- Do not share Buyer information with any other parties (organizations/individuals, private or public social media pages/groups) for the purposes described in point b above.
- Do not seek, solicit, and/or use unauthorized personal data services.
- Do not engage in any other actions that violate personal data according to current laws and regulations.
Detailed information about the policy and penalties for violations can be found at the following link:
Update on New SLA Processing Time
To enhance the competitive advantage of fast shipping in online shopping and contribute to increasing the conversion rate for sellers, Shopee will update the order processing time for Express and Bulky Shipping methods starting from July 22, 2024, as follows:
- Effective from July 22
- Orders placed before 2:00 PM must be processed by 9:00 PM on the same day
- Orders placed between 12:00 PM - 2:00 PM from July 22 to August 18 will not be penalized if not delivered on the same day
- Penalty points will be applied starting from August 18
Update on Product Quality Rating Ratio
From July 29, 2024, Shopee will begin to apply account restrictions for Shops with a negative NRR (Negative Review Rate) ≥ 30% and at least 5 product reviews with 1-2 stars based on data from the previous week.
Additionally, Shopee will update the data every Thursday (data from Monday to Wednesday of the week) and remind Sellers with a negative review rate nearing the violation threshold to make improvements.
Impact of New Updates on Shopee for Sellers
1. Behavior infringing on Buyer Information
- Positive Impact:
- Protects the rights and information of Buyers, creating a safer shopping environment.
- Increases the credibility of Shopee and compliant Sellers.
- Negative Impact:
- Sellers need to be more cautious in using Buyer information to avoid violating regulations.
- There is a risk of penalties for non-compliance, which can affect business operations.
2. Update on the New SLA Processing Deadline
- Positive Impact:
- Helps Sellers speed up order processing, increasing the on-time delivery rate.
- Enhances the reliability of the Shop, attracting more customers.
- Negative Impact:
- Sellers need to have an efficient order processing procedure to meet the new deadlines.
- There is a risk of penalty points for late deliveries, which can affect the Shop's ranking and sales performance.
3. Update on the Product Quality Rating Ratio
- Positive Impact:
- Helps Sellers assess product quality objectively, allowing them to take measures to improve and enhance product quality.
- Increases the Shop's credibility and attracts more potential customers.
- Negative Impact:
- Sellers need to pay more attention to product quality to receive positive reviews from customers.
- There is a risk of a lower Shop ranking if there are many negative reviews, which can impact sales performance.
Overall, Shopee's new updates are aimed at creating a safe, reputable, and effective shopping environment for both Buyers and Sellers. Therefore, Sellers need to:
- Stay fully updated on the new Shopee regulations.
- Adjust business operations to comply with the new regulations.
- Enhance product and service quality to meet customer needs.
What Do Shopee's New Updates Indicate?
The recent policy updates from Shopee reflect Shopee's commitment to:
- Protecting Buyer Interests: Shopee is tightening regulations on the use of buyer information and implementing strict measures against violations. This helps create a safer and more trustworthy shopping environment for buyers.
- Improving Service Quality: Shopee is working to enhance service quality by applying higher standards for order processing and product quality evaluation. This aims to provide a better shopping experience for buyers and promote the sustainable development of the platform..
- Creating a Fair Business Environment: Shopee is implementing policies to ensure fairness for all sellers. This promotes healthy competition and encourages sellers to focus on improving product and service quality.
However, there are some points to consider:
- Adapting to New Regulations May Be Challenging for Some Sellers: Some sellers may struggle to comply with new regulations, particularly those related to the use of buyer information and order processing.
- Close Coordination Between Shopee and Sellers Is Needed: Effective implementation of new policies requires close coordination between Shopee and sellers. Shopee needs to provide comprehensive information and support to help sellers comply with the new regulations.
- Time Is Needed to Assess the Effectiveness of New Policies: It is still early to evaluate the effectiveness of the new policies. More time is needed to observe and assess the impact of these policies on buyers, sellers, and the Shopee platform.
Overall, UpBase believes that Shopee's recent policy updates are a positive step. However, efforts from both Shopee and sellers are needed to ensure the effective implementation of these policies.
Additionally, sellers/brands should also be aware of the following points:
- Shopee's policies may change over time. Therefore, sellers/brands need to regularly update their information to ensure compliance with the latest regulations.
- Shopee has a customer support team available to answer sellers' questions about the new policies.
