Analyzing The Main Causes Of The Drop In Sales On Shopee And Measures To Remedy

18 May, 2024 by
Analyzing The Main Causes Of The Drop In Sales On Shopee And Measures To Remedy
Lameco JSC

The e-commerce market is becoming increasingly competitive, a decline in sales on Shopee poses a considerable challenge. To overcome this situation, it is necessary to understand the main causes and apply effective solutions. Below is a detailed analysis of the main causes of the decline in sales and how to address them.

1. Economic Recession

Economic recession is one of the main causes leading to a drop in sales on Shopee. When the economy is in trouble, consumers tend to tighten their spending, reducing the purchase of non-essential products. This directly affects the sales of sellers on Shopee.


  • Optimize costs: Sellers need to reconsider their operating costs, finding ways to reduce costs without compromising product quality.
  • Promotion programs: Create attractive promotions to stimulate consumer demand.
  • Diversify products: Provide essential and more affordable products to meet customer needs during difficult periods.
  • Free shipping: Implement a free shipping policy to attract customers.

2. Ineffective Advertising / Marketing Campaigns

An ineffective advertising or marketing campaign may lead to a failure in attracting new customers and retaining old ones. This reduces traffic and sales.


  • Review marketing strategies: Reconsider current marketing strategies, identify what's ineffective and make adjustments.
  • Use diverse marketing channels: Combine various marketing channels like social networks, email marketing, and online advertising to reach more customers.
  • Optimize content: Create attractive, high-quality content that meets customer needs.

3. Penalty Points

Penalty points are an important factor affecting the reputation of a store on Shopee. If the penalty points are high, the store's ranking will be reduced, decreasing its ability to reach customers.


  • Improve service quality: Ensure punctual delivery, the product matches the description, and good customer service to reduce return rates and complaints.
  • Solve complaints quickly: Handle customer complaints quickly and professionally to avoid penalty points.
  • Encourage positive reviews: Motivate customers to leave positive reviews through promotions or special offers.
  • Monitor and update inventory: Ensure sufficient stock to avoid canceling orders due to stock-outs.

4. Shopee Algorithm Change

Shopee frequently changes search algorithms and product display, this can affect traffic and sales of stores.


  • Update product information: Ensure product information is always complete and accurate, use appropriate keywords to optimize SEO on Shopee.
  • Enhance interaction: Encourage customers to interact with the store through promotions and good customer care.
  • Track trends: Always update changes from Shopee and adjust sales strategies appropriately.

5. Market Changes

Competition from rivals offering better prices or higher quality products is also a cause leading to a decline in sales.


  • Research competitors: Continuously monitor and analyze competitors to understand their strategies.
  • Create differentiation: Search and exploit unique difference points to attract customers.
  • Improve product quality: Ensure your product is of good quality, meeting customer needs.
  • Reasonable price strategy: Review pricing strategies to compete with rivals, consider applying discount programs or product combos to attract customers.

Introducing Lameco's Solution

Lameco offers comprehensive solutions to help sellers improve sales on Shopee. With experience and in-depth knowledge in e-commerce, Lameco will help you optimize marketing strategies, improve service quality, and enhance the operation efficiency of your store.

Contact Lameco today for advice on optimal solutions to help you grow your sales on Shopee most effectively!

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