Shopee, the leading e-commerce platform in Vietnam, is testing a policy allowing order cancelations even when goods are en route to warehouses. This move, which is currently in trial in HCMC and Hanoi, is aimed at improving user experience but has drawn mixed reactions from sellers.
Shopee is testing a new policy that allows customers to cancel orders later in the shipping process as part of efforts to win business, placing pressure on sellers. The new policy, introduced late last month, allows buyers to cancel orders even when the goods are en route to warehouses. Until now, cancelations were only allowed until sellers dispatched items to warehouses. This change allows Shopee to go one up on its rivals like Lazada and TikTok Shop in terms of user-friendliness.
The change has met with mixed reactions. Buyers are pleased as they now have more control over their shopping experience. Thanh Tan, 36, said, "I find it easier to cancel while the order is still in transit." However, many sellers are concerned about the added pressure. Huyen Tran, a seller of household goods, said, "I understand that platforms are trying to attract and retain buyers, but these policy changes place pressure on us." Sellers may need to invest more in inventory management.
Do Quang Huy, a university lecturer in e-commerce, agreed there might be pitfalls. When orders are canceled during transit, the goods might not be returned immediately to sellers with shippers waiting until there is a substantial volume to do so, increasing the risk of goods getting lost or being incorrectly returned. "Sellers need additional management to check and handle such cases," he said.
According to YouNet ECI's first-quarter report, Shopee was the top e-commerce platform in Vietnam with a 67.9% market share. TikTok Shop, however, is emerging as a strong contender with a market share increase of 6.3 percentage points from the end of 2023 to 23.2% in the first quarter of 2024. To maintain its lead, Shopee has been adding policies to attract and retain customers, often at the cost of sellers. In March, it extended the return period for buyers from seven days to 15, causing concerns among sellers about potential misuse.
Do you think Shopee's new policy benefits buyers or sellers more?
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