Seller Shipping Fee Saver Program Should you join?

As many of you are aware, Shopee is rolling out a new policy starting 19 March, which the option for buyers to request returns and refunds due to change of mind. While this might seem daunting, it's an opportunity for us to adapt and thrive on this platform.

Alongside this policy change, Shopee has launched a programme to help sellers mitigate the financial impact of increased returns.

P.S.: Although I may not support the "Change of Mind" policy, but it's still important that we adapt and navigate through these changes together.

SCENARIO 1: SMALL ITEMS

• Current Situation:
  - With 1,000 orders monthly,
  - at an additional RM0.20 per order,
  - you're looking the cost at RM200.
  
  - If your return rate due to seller fault is 2%
  - equating to 20 orders,
  - Lets take average of RM18 for the ( FSF & RSF )
  - you're currently covering RM360 in shipping fees for returns.
  
  New policy COM:
  - Example： with a 5% return rate for change of mind, the programme covers these costs
  
  In this scenerio RECOMMEND to join the program as you saving total of RM160 and the hassle of processing refunds.
  
  

SCENARIO 2: BULKY ITEMS

• Current Situation:
  - Again, with 1,000 orders,
  - the RM0.20 fee totals RM200.
  - For bulky items, the return shipping cost is heftier. lets take around RM40 FOR ( FSF & RSF )
  - With a 2% return rate ( seller fault ), you face RM800 in fees.
  
  New COM Policy:
  - Example: with a 5% return rate for change of mind
  - Capped covering RM20 which I will be have a potential lost of RM20 each
  - 5% = 50 Orders x RM20 = RM1000 ( Bear by selller )
  
  In this case, I would RECOMMEND to join as well, by joining the program you're potentially saving RM1,600, factoring in the partial coverage for bulkier items' return costs.
  
  

SCENARIO 3: LOW RETURN RATES

• Current Situation:
  - If your return rate due to seller fault is exceptionally low
  - 0.5% on 1,000 orders = 5 orders monthly
  - the RM0.20 fee totals RM200.
  - Lets take average of RM18 for the ( FSF & RSF )
  - 5 orders X RM18 = RM90
  
  Then in this situation your costs and return fees are significantly lower. Under the new policy, the increased return rate could mean you're better off NOT joining the programme.
  
  

Beyond the Numbers:

It's crucial to consider other factors:

• The cost of packaging materials.

• The risk of items being returned damaged

• The time required of managing returns and refunds claims.
  
  

The Bottom Line:

Your decision to join the "Seller Shipping Fee Saver Programme" should depends on your product type, return rates, and how you balance upfront costs against potential savings and operational efficiencies.