Lazada will evaluate the seller's order cancellation rate index, so if there are too many order cancellations, it will have a great impact on the seller. The platform will also impose corresponding penalties according to the seller's order cancellation rate. So how to calculate the Lazada cancellation rate, what will happen if it is too high? Introduce the following to share with you.
1. Lazada Store Cancellation Rate Calculation Method
Definition: The platform will count the order cancellation rate from T-7 days to the first 28 days according to the number of products, calculated in units of pieces, and can be viewed in the background of the seller center. (T refers to today's date)
The calculation formula is: the number of products canceled due to the seller's reasons in the 28 days before T-7 (the current day - the 7th day) / the total number of products.
For example, an order has 5 products, 3 of which have been canceled; another order has 5 products, but none have been canceled, then the return rate is equal to 3/(5+5)=30%.
Factors included in Lazada’s cancellation rate are mainly returns due to seller reasons, such as failure to deliver goods in time, out of stock, packages not delivered to the sorting center on time, and orders canceled due to wrong prices caused by sellers.
2. What will happen if the cancellation rate of Lazada store is too high?
Lazada’s order cancellation rate ≤ 1% is the best. If it is too high, sellers will be restricted to varying degrees. The details are as follows:
1. If the cancellation rate is greater than 2%, sellers cannot register as LazMall sellers;
2. The cancellation rate is too high, and it is impossible to set up advertisements and promotional activities;
3. If the cancellation rate is greater than 10%, the number of orders that the seller is allowed to accept per day will be limited;
4. If the cancellation rate is greater than 30%, it will automatically switch to vacation mode and maintain vacation mode for 7 days.
If Lazada switches to the holiday mode due to the high cancellation rate, the store cannot cancel the holiday mode on its own within these 7 days, but it can continue to fulfill existing orders. During these 7 days, if the cancellation rate is lower than 30%, the holiday mode will automatically end on the 8th day, and the store will resume normal operation; if it is still higher than 30%, the holiday mode will be extended for an additional 7 days, and the holiday mode cannot be cancelled. model.
3. How to restore the Lazada cancellation rate?
Specifically how to restore the cancellation rate of your store, it is recommended that sellers start from the following three aspects:
1. Check the inventory of the product every day. If the inventory is too low, make up the inventory in time;
2. If the delivery cannot be made on time, it is recommended to remove the corresponding product reasonably;
3. Due to problems caused by the supply chain, you can turn on the holiday mode to prevent unnecessary impacts caused by failure to deliver goods.
4. How to prevent buyers from canceling orders?
First, let’s talk about the main reasons why Lazada sellers cancel orders:
1. The seller failed to change the order status from "Pending" to "Ready to ship" within 48 hours after receiving the order
2. The package has not arrived at the sorting center within 7 calendar days after receiving the order
3. The seller has no goods to send because of insufficient inventory
4. The seller refuses to ship the product because of wrong pricing
So how to prevent sellers from canceling orders?
1. 【Inventory Allocation】
• Plan and allocate actual reserved inventory for Lazada platform.
• Update Inventory: Update inventory in real time in Seller Central. If there is no stock, please update the stock to "0".
• Sellers must update their inventory at least once within 60 calendar days, otherwise, Lazada will automatically set the inventory of SKUs that have not updated their inventory to "0". (Products with inventory "0" are still displayed in the foreground, but consumers cannot place an order)
2. [Order Shipment]
• Be sure to change the order status to "Ready to ship" within 48 hours, and ensure that the order arrives at the sorting center within 7 calendar days.
3. 【Product Pricing】
• Pricing in local currency. Do not set prices in US dollars, RMB, etc.; do not directly copy the price from the Malaysian seller center to other seller centers!
• Real-time price updates
Therefore, if the cancellation is due to your own problems, you must communicate with the buyer in time to see if you can allow them to choose other reasons for canceling the order and give them some compensation, so as not to cause it to be included in the Lazada cancellation rate and bring inconvenience to the store. Necessary Negative Effects. Therefore, it is very important to understand the rules of the platform clearly before operating it.
A very useful customer service software under Dianxiaomi