Shopee is trying to one-up its rivals like Lazada and TikTok Shop by recently introducing a new in-transit return/refund policy.
With the new change, buyers can now choose to cancel their order even after sellers have sent the parcel out for pick-up/drop-off, and before the parcel reaches them.
For buyers, this is very good news. 👍
But for Shopee sellers, maybe not so much. 😞
Understandably, Shopee has a tough balancing act of keeping both the buyers and sellers on their platform happy, but the new policy is definitely harmful to the seller market.
Buyers Have More Autonomy Over Their Purchase
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Are you having second thoughts about your purchase? Don’t worry—now you can instantly cancel the order at no cost.
The new policy allows buyers to request refunds even after their parcels have been shipped, as long as the product has not reached them yet. 📦
Unlike the usual return/refund claim, sellers cannot dispute an in-transit return/refund order.
So buyers, rest assured that you will be able to cancel an order. 🙋
Buyers Gain And Sellers Lose From In Transit Return/Refund
This means that sellers will have to absorb the costs of packaging, logistics, and labour costs if a buyer changes their mind mid-transit.
It puts sellers in a difficult position, as they’ve already invested time and resources into preparing the order. 💸
And if the refund is approved, the parcel will be returned to the seller within 3-7 days.
That means, during this time, the seller will have to deal with an inventory deficit.
Additionally, the products are at risk of being mishandled during transit, which could further compromise the seller’s business. (Shopee only compensates the seller if the parcel is lost in transit. 😨)
Sellers Only Benefit In One Particular Scenario
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Typically, buyers can only make a return/refund claim after the products reach them.
When approved, sellers will have to bear all fees related to the return/refund process.
If buyers opt to cancel an in-transit order, sellers do not have to pay any extra fees.
Assuming that the buyers would have raised a return/refund claim if the order had arrived, then this change is actually beneficial for both buyers and sellers.
Yet this is such a specific situation and is operating off an assumption. 🤷
And without the option to cancel in-transit orders, buyers will be less likely to refund since the process is more troublesome.
For example, if you already made a purchase, and there is no easy way to refund, surely you will be more likely to follow through with the order right? 🤔
Ultimately, the newfound agency afforded to buyers will increase the likelihood of order cancellations.
Troll Orders May Squeeze Sellers Even More
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Buyers have more leeway now and that means they may get more rash with their purchases.
Then, buyers can retrospectively cancel the orders that they regret or change their mind about, even after the sellers have shipped them out.
With the ability to cancel orders at any point during transit, buyers can essentially “troll” sellers, placing orders with no intention of following through.
Also, this is a window for unscrupulous competitors to exploit and sabotage their rivals (very scary, if you think about it) . 😱
The ‘troll ordering’ behaviour, emboldened by the new policy, gives buyers too much power, while sellers are left to shoulder the risks.
This can lead to wasted resources and labour fees for the seller, squeezing smaller sellers that are already at a disadvantage to the larger sellers.
Shopee Ads Are Less Attractive As A Result
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Ever tried running Shopees Ads?
Imagine running Shopee Ads to increase the exposure of your products, just to receive more troll orders.
With the new change, each risk per order for the seller is increased and thus you may end up spending more on marketing just to endure more risks.
(❗Fun Fact: Did you know that Ad blockers will make your Shopee Ad disappear on PC?)
Sellers can Take Back Control By Creating Their E-Commerce Store Today
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So, what can sellers do to mitigate the risks of this policy?
One solution is to build their very own e-commerce stores (with grant support too!). 💡
Having an independent e-commerce site will reduce the dependence on platforms like Shopee.
As a result, sellers can avoid being at the mercy of policies that might harm their business. 💪
It’s time for sellers to take back control and start building their online empires.
But if you are a buyer on Shopee, this change is surely welcome news.
With more power comes more responsibility, so please do not misuse the option and make things harder for sellers. 🫂
Related to Shopee:
Top 10 Gadgets To Buy On Shopee August 2024
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