Shopee Announcement: Updates on the policy regarding order cancellation

Recently, Shopee issued a notice regarding the "Order Cancellation Policy Update". The original text of the notice is as follows:
Cancelling orders due to sellers will bring a very bad shopping experience to buyers. In order to improve buyers' shopping experience, the Shopee platform has tightened the order cancellation policy from the following three aspects.
1. High number of order cancellations (new)
Starting from October 19, 2020 (refer to the data of the past 7 days), if the seller's shop cancels orders >=500 due to the seller's reasons in the past week, the following penalties will be imposed.
From March 15, 2021 (refer to the data of the past 7 days), if the seller's SIP shop canceled orders due to the seller in the past week >=500, but the seller:

1. Refuse to compensate the buyer or provide any compensation services;

2. Give up operating SIP stores

The main store corresponding to the SIP store will also be restricted to store traffic.
Example: Seller A’s SIP shop has cancelled 510 orders due to the seller’s reasons in the past 7 days. If seller A is willing to provide compensation services and continue to operate the SIP shop, only the SIP shop will be subject to traffic restrictions and the seller will be removed for free collection Eligibility: If seller A is unwilling to provide any compensation services or give up operating the SIP store, both the SIP store and the corresponding main store will be subject to traffic restrictions, and the seller will be removed from the free solicitation qualification.

2. High order cancellation rate
In order to regulate shops with a higher order cancellation rate, the Shopee platform will implement the following policies from September 1, 2020 (refer to the past 7 days).
The Shopee platform will refer to the records of the past 7 days every week and turn on the Vacation Mode for shops with higher order cancellation rates. Shopee will not help sellers close the holiday mode of the store. Sellers can close the holiday mode by themselves 24 hours after the holiday mode is turned on.
The conditions for the store to be opened in holiday mode are as follows
Turn off vacation mode process

Enter Shopee [Seller Center]-[Shop Settings]-[Holiday Mode] and close it.

Note:
1. Only cancelled orders in uncompleted orders will be counted into the order cancellation rate, and return orders will not be counted into the order cancellation rate
2. SIP shops are temporarily not applicable to this policy
3. The policy checks data for the past 7 days every week
3. High cancellation rate policy for shops with small orders
Since shops with small orders will not be punished by the penalty scoring system, in order to ensure the service quality of these shops, the Shopee platform will restrict the cancellation rate of shops with small orders from September 15, 2020 (see the past 6 weeks data).

*Buyer Warning System
When the buyer places an order or pays, he will receive a warning. The buyer will be informed: "This store has a low order completion rate recently. Please consider and confirm whether your order can be completed."
Note: The influence of store search rankings will be replaced by the buyer warning system. The specific implementation date will be notified separately.
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