When you stop taking orders on Lazada, it doesn’t necessarily mean there’s something wrong with your CRO optimization (although sometimes it also might). Many times your inability to receive orders is due to something called an OVL limit. We’ll talk more about that in a future paragraph.
OVL stands for Order Volume Limit. This relates to the maximum number of orders your Lazada store is allowed to accept in a day.
What does it mean? This basically means that once your store reaches its order volume limit, your product will no longer be available on the Lazada platform (at least for that particular day). Therefore, buyers will not be able to order your product again until your OVL is reset the next day.
There is a default OVL of 10,000 for all Lazada sellers unless you are new to the platform (meaning you have only used Lazada for less than 90 days) in which case your OVL will be locked at 150.
Does My Performance Have Anything To Do With My OVL And How
By default, no, as it is Lazada’s policy to provide order volume limits to all sellers. However, penalties on Latest Mailing Database volume caps may also apply if your seller’s performance in terms of cancellation rates (seller-initiated) decreases.
This policy follows a two week time frame. If you initiate cancellation of your orders (more than 5%) in the past two weeks (regardless of order status), your OVL will be reduced to half of your average daily OVL from the past two weeks.
Another scenario that can lead to excessive volume limit deductions is when you can cancel more than 3% of your ordered items that have been in Ready to Ship (RTS) status in the past two weeks. Your OVL will also be reduced to your average daily OVL of the previous two weeks.
The last condition for OVL penalty/reduction is when you cancel more than 5% of your ordered items (regardless of status) in the last seven days, and your canceled products are equivalent to more than five items, your OVL will be reduced to only 25% of your average daily OVL over the past seven days.
How to Maintain OVL
The idea is that you need to avoid seller-initiated cancellation rates going up to 3%-5%. But based on first-hand experience, this is easier said than done. So here are some pointers you can incorporate into your seller SOP to prevent having to act on seller-initiated cancellations:
- Only place the amount of stock available on hand
- Anticipating incoming stock and placing it in your. Lazada inventory can make you lose track of the actual quantity of your products. Therefore, once you realize that you don’t have enough stock, you have no choice but to cancel some existing orders.
- Only set orders to RTS when items are fully packed and ready to be delivered or picked up
- Due to unseen events, errors in your workflow can invite the need to cancel orders. If the item is already Gambling Email List tagged as RTS, you will put your OVL at risk.
- Make sure your stock and price levels are accurate
- Thus, you can process orders more quickly. Otherwise, any reason to cancel the order may appear at any time.
