Recently, the e-commerce platform Shopee has adjusted its SLA (Service Level Agreement) standards for delivery to expedite order processing and increase conversion rates for orders using Fast and Bulky Shipping methods, while also enhancing the online shopping experience for users on the platform.
Shopee has expedited the allowable order processing time.
To speed up order processing and increase the conversion rate for orders using Fast and Bulky Shipping methods, Shopee has updated the processing deadlines as follows:
All orders generated before 12 PM must be processed before 9 PM on the same day. Orders generated after 12 PM will be processed at 9 PM the following day.
Sellers need to confirm before the specified time for each shipping provider to schedule a pick-up on the same day.
This new processing deadline only applies to orders using the Fast and Bulky Shipping methods.
The processing deadlines for orders using the Standard and Express Shipping methods remain unchanged.
Will the new processing deadlines make it difficult for businesses to comply?
Accelerating the order processing speed will ensure buyers' rights and encourage businesses to be more responsible in optimizing productivity, standardizing processes, and providing a better shopping experience, ultimately delivering products to customers faster.
However, during campaign days, the volume of orders can be 5 to 10 times higher than the daily baseline, creating significant pressure to process orders on time. With such a massive volume, if brands are unprepared or fail to process orders promptly, it can negatively impact the customer experience and increase the Late Shipment Rate (LSR). A high LSR can result in penalties and, if the penalty points are excessive, the store may face temporary suspension of account privileges.
What can businesses do to avoid late shipment penalties?
To maintain and grow their store and operate effectively on Shopee, businesses must adapt to comply with the new SLA standards for order processing deadlines. A high Late Shipment Rate (LSR) will significantly impact the store. Therefore, businesses need to:
Improve the Delivery Process
- Establish a daily order monitoring process to track and update new orders, ensuring timely processing.
- The store's operational team should be well-versed in the new SLA regulations, coordinate with warehouses to dispatch orders, ensure the courier picks up the packages, and file complaints with Shopee’s customer service if the courier fails to collect the goods.
- Optimize warehouse efficiency by planning for overtime or hiring additional temporary staff to meet processing deadlines.
Plan for Proper Inventory Management
- Regularly monitor sales performance reports in the “My Sales Report” section on the seller channel to plan and maintain appropriate inventory levels for each SKU, avoiding delays caused by insufficient stock.
- Incorrectly placed or unoptimized inventory can also affect order processing. Rearrange the packing center, and if possible, keep best-selling products close to the packing center.
Contact KAM, BD, or SSP Network for SLA Extensions
Brands can contact the Shopee KAM, BD, or network SSP (Shopee Shop Partner) for operational support and SLA extensions in certain cases, such as relocating warehouses or experiencing sudden increases in order volume. SLA extensions on Shopee cannot be done independently by brands and must be facilitated through KAM, BD, or SSP.
As an official Shopee partner with experience supporting over 200 brands, UpBase SSP will assist businesses in reducing campaign day processing pressures by helping to extend SLA at a reduced cost of 50% (applies only to brands already participating in the network). Additionally, joining the UpBase SSP network provides support for operational issues, free mall submissions, monthly reward vouchers, and more.
Learn more about UpBase SSP: https://upbase.vn/dich-vu-van-hanh-shopee-shop-partner/
