Shopee forces sellers to conduct identity verification

Shopee’s local stores in Thailand have recently released an important notice. The platform requires all merchants to complete identity verification (Seller KYC). This move aims to enhance account security and optimize the user experience by preventing fake and forged information, verifying the authenticity of merchant identities, and significantly reducing the risks of unauthorized access or illegal activities.

I. Purposes of Identity Verification

1.Strengthening Account Security

Through identity verification, the authenticity of merchants’ identities can be ensured, and counterfeiting and fraudulent behaviors can be avoided.

2.Reducing the Risks of Illegal Activities

It effectively prevents unauthorized account access and other illegal activities.

3.Complying with Platform Compliance Requirements

Completing identity verification is helpful. It can reduce account suspensions. It can also reduce license restrictions. These are caused by compliance issues. Thus, it ensures that merchants can operate legally. Their operation is in accordance with Shopee’s terms of use.

II. Three Steps for Merchant Identity Verification

1. Fill in Store Information: Provide complete store and business information.

2. Identity Verification: Upload identity proof documents (such as ID cards, passports, etc.) for identity verification.

3. Fill in More Information: Provide other necessary supplementary information to ensure that the platform has a comprehensive understanding of the merchants.

III. Important Reminders

All merchants (including both existing merchants and newly joined merchants) must complete the identity verification as required before they can continue to use the Shopee platform for sales.

Merchants who fail to complete the identity verification on time will face restrictions on account functions and may even have their accounts closed.

Therefore, Shopee strongly recommends that all merchants complete the identity verification as early as possible in accordance with the platform’s guidelines to ensure the continuous and normal use of their accounts and avoid account restrictions and potential problems caused by unfinished verification.

Shopee’s free pick-up standards have been updated

To further enhance customer satisfaction and the overall shopping experience, Shopee has announced an adjustment to the eligibility criteria for its Shopee Pickup Service (SPS). This change will take effect on December 16, 2024. It aims to encourage sellers to speed up the delivery process and improve the efficiency of the supply chain. The conditions for the Shopee Pickup Service (SPS) are as follows:

1.Addition of the Fast Shipment Rate Indicator: Sellers are required to maintain a fast shipment rate of at least 75% for their orders, demonstrating their emphasis on efficient order fulfillment.

2.Meeting the Average Daily Order Volume Requirement: Cross-border sellers’ Average Daily Order (ADO) volume needs to reach 10 orders or more, reflecting a certain scale of business.

3.Control of Preparation Time: All orders should utilize the First Mile feature, and the average preparation time should not exceed 2 working days to ensure the speed of logistics.

4.Limit on the Proportion of Pre-sale Goods: Pre-sale goods should not exceed 10% of the inventory to reduce waiting time and increase the supply of in-stock items.

5.Reduction of the Error Prediction Rate: The prediction accuracy in the First Mile needs to be maintained at a high level, and the error prediction rate should not be higher than 5% to improve the precision of logistics.

6.Maintenance of a Good Penalty Record: The proportion of stores with a penalty score of ≥4 points in the previous month among the total number of stores (PP%) needs to meet the specified standards, reflecting an attitude of compliant operation.

It should be noted that:

1.Voluntary waiver of the free pickup service

Sellers can choose to waive the free Shopee Pickup Service (SPS) if they prove their logistics capabilities are sufficient for faster shipment speeds. Specifically, they must ensure the average time from shipment to warehouse arrival is ≤ 1.2 days. This time is measured from order generation to the goods’ arrival at the warehouse, being scanned, and stored. Once they meet this condition, they will have the opportunity to receive freight subsidies provided by the platform.

2.Handling of multiple shipping addresses

If eligible sellers have multiple shipping addresses during the same period, they can choose only one service. They can either accept the free pickup service or enjoy the freight subsidies, but not both at the same time. This means that sellers need to evaluate the optimal solution based on their own circumstances and make appropriate decisions.

Shopee’s subsidy policy for non-free pickup sellers

Shopee offers freight subsidies to sellers who meet specific conditions, especially those in areas not covered by the door-to-door pickup service. Sellers can enjoy a freight subsidy of 0.1 yuan per order, provided that the following conditions must be met:

1.Fast Shipment Rate ≥ 75%

Sellers are required to ensure that at least 75% of their orders are shipped within the specified time.

2.Cross-border Average Daily Order Volume ≥ 10

Sellers’ cross-border sales business needs to have at least 10 orders per day.

3.Utilization of the First Mile Feature

All of the sellers’ orders must use the First Mile service. The average preparation time should be ≤ 2 days.
The calculation standard is: the time from the generation of an order to the scanning at the First Mile or in the warehouse.

4.Proportion of Pre-sale Goods ≤ 10%

The proportion of sellers’ pre-sale goods in the total goods should not exceed 10%.

5.First Mile Error Prediction Rate ≤ 5%

When using the First Mile service for their orders, sellers need to keep the proportion of error predictions within 5%.

6.Requirements for Penalty Score Proportion

Sellers’ penalty scores for the previous month must reach a certain proportion. The specific standards have not been fully clarified yet, but according to Shopee’s requirements, sellers need to ensure that they do not exceed the proportion stipulated by the platform.

To enjoy the freight subsidy, sellers must meet requirements for fast shipment, order volume, preparation time, and other factors. They also need to ensure the normal use of the First Mile feature for orders and comply with the platform’s penalty score standards and the proportion of pre-sale goods. Sellers can monitor the subsidy status in real time through the “My Income” page to ensure compliance with the latest subsidy policies.