Recently, many Shopee store owners have been troubled by rising order cancellation rates. Order cancellations not only impact revenue but also negatively affect the store's operational performance.
Understanding these concerns, this article will analyze the six common reasons why Shopee stores experience increased order cancellations and suggest effective remedies.
1. Store Not Optimized, Losing Out to Competitors
In the highly competitive environment on Shopee, customers have countless choices. If your store is not optimized in terms of images, content, or less attractive promotions compared to competitors, customers will easily cancel orders and switch to other stores.
Remedies:
- Participate in Shopee promotions: Upgrade your store by joining Freeship Xtra and Voucher Xtra packages to attract customers.
- Optimize product content and images: Ensure product images are eye-catching and professional, with detailed and complete descriptions to attract customers.
- Research and compare with competitors: Monitor competitor stores to grasp market trends and adjust prices and promotions accordingly.
2. Slow Response Rate to Messages
In the 4.0 era, customers always expect quick responses. Delayed replies to messages not only make customers feel frustrated and likely to cancel orders but also affect the store's reputation.
Remedies:
- Respond to messages promptly: Try to reply to customer messages within 12 hours and proactively conclude conversations.
- Maintain a high response rate: Aim to keep the message response rate above 95% to create a good impression and enhance the store's reputation.
- Use support tools: Utilize Shopee's automated message response tools to save time and improve work efficiency.
3. Orders Pending Due to Customer Forgetting to Pay
Order "pending" status due to customers forgetting to pay often occurs with orders paid via ShopeePay. Shopee will automatically cancel the order after 2-3 days if the payment is not completed. This situation is more common during major sales events when the number of orders spikes.
Remedies:
- Remind customers to pay: Regularly check the status of orders and send payment reminders to customers.
- Offer diverse payment methods: In addition to ShopeePay, provide other payment options like Cash on Delivery (COD) for customer convenience.
4. Product Price Higher Than Competitors
For the same type of product, customers usually tend to choose the one with a lower price. If your product price is higher than competitors, customers will easily cancel orders to buy similar products at a better price.
Remedies:
- Focus on product quality: Instead of competing on price, focus on improving product quality to differentiate from competitors.
- Build a brand story: Customers are willing to pay for high-quality products from reputable brands. Create a unique brand story that resonates emotionally with customers.
- Attractive promotions: Draw customers with appealing promotions, discounts, and gifts with purchases.
5. Long Order Processing Time
In the "super-fast" era, customers increasingly want quick deliveries. Long order processing times are one of the main reasons customers cancel orders, especially for same-day delivery orders.
Remedies:
- Optimize the order processing workflow: Shorten order processing times by streamlining packaging processes and partnering with reputable logistics providers.
- Prepare inventory in advance: Anticipate trends and customer psychology to forecast inventory levels, ensuring products are always ready for dispatch.
- Update order status frequently: Keep customers informed about the progress of their orders to reduce cancellations due to long waiting times.
6. Inefficient Inventory Management
Poor inventory management leading to stockouts or insufficient stock for orders is a direct cause of order cancellations.
Remedies:
- Apply technology to inventory management: Use sales management software to effectively manage inventory, continuously update product quantities, and avoid stockouts.
- Conduct regular inventory checks: Frequently inventory to understand stock levels, plan restocking, and ensure a stable supply.
Conclusion
These are the six common reasons leading to increased order cancellation rates on Shopee stores and effective remedies. We hope this article provides useful information to help you improve your Shopee business operations, increase revenue, and develop your store sustainably.
Facing challenges in managing and developing your Shopee store?
Let Lameco accompany you! With a team of experienced experts, we provide professional and effective solutions for operating and developing Shopee stores, helping you:
- Optimize your store to attract potential customers.
- Increase conversion rates and order volumes.
- Efficiently manage operations, saving time and costs.
Contact Lameco today for detailed consultation!