Shopee tests new policy extending customers’ order cancellation period

Once an order is placed on the platform, sellers package the goods and ship them to Shopee warehouses where they are delivered to customers.

The new policy, introduced late last month, lets buyers cancel orders even when goods are en route to warehouses. Until now, cancellations were only allowed until sellers had shipped goods to warehouses.

The policy is being tested among select sellers in Ho Chi Minh City and Hanoi who use Shopee’s standard shipping service, SPX Express.

The change allows the company to surpass competitors like Lazada and TikTok Shop in terms of ease of use, as cancellations can only be made up until the order has been shipped.

The time window for shoppers to cancel orders on Shopee, Lazada and TikTok Shop. Chart by VnExpress/Vien Thong

But the change has been met with mixed reactions. Shoppers are obviously happy because they now have more control over their shopping experience.

Thanh Tan, a 36-year-old who regularly shops online, says it saves him the hassle of receiving and returning goods.

“I find it easier to cancel an order while it’s still in transit. Sometimes I end up choosing the wrong items, finding a better seller, purchasing the item differently, or regretting the purchase.”

Still, many retailers are wary of the added pressure. Huyen Tran, a home goods retailer — who has yet to have any canceled orders — said retailers may need to invest more in inventory management.

“I understand that platforms are trying to attract and retain buyers, but these policy changes put pressure on us. “Returned or canceled orders can be lost if sellers don’t have an efficient system in place.”

Do Quang Huy, a university lecturer in e-commerce, agreed there can be pitfalls. When orders are canceled in transit, goods may not be returned to sellers immediately, and shippers wait until volumes are significant to do so, he said.

This increases the risk of goods being lost or incorrectly returned, he said. “Therefore, merchants need additional management to check and handle such cases.”

In response to VnExpress Shopee responded that the policy is not only aimed at improving user experience but will also benefit sellers.

This shortens the wait time for returns to sellers because shipping is stopped earlier, she explained. It also reduces the likelihood of returns and refunds after delivery, saving money for sellers who have to bear the shipping costs in such cases, she said.

Seller ratings do not change if orders are canceled during the extended contract period, and sellers are not obligated to cover shipping costs.

“If the cancellation request is accepted but the item is still delivered to the buyer, Shopee will compensate the seller.”

Shopee was the largest e-commerce platform in Vietnam, with a market share of 67.9%, according to a first-quarter report by e-commerce data analytics firm YouNet ECI.

But TikTok Shop is emerging as a strong competitor thanks to its expertise in live streaming. Its market share rose 6.3 percentage points from the end of 2023 to 23.2% in the first quarter, the report said.

To maintain its leadership position, Shopee consistently introduces new policies aimed at attracting and retaining customers, often at the expense of sellers.

In March, the company updated its returns policy, extending the returns period for buyers from three to seven days and even up to 15 days. Many sellers complained that buyers were returning products after using them.