As Lazada's highly anticipated 327 promotion approaches, many sellers are facing an unexpected crisis: sudden order volume restrictions that are causing significant revenue losses. Numerous store owners report being unable to process customer orders despite having sufficient inventory and no apparent policy violations.
The Hidden Culprit: Order Volume Limit (OVL)
The root cause appears to be Lazada's Order Volume Limit (OVL) system. When a store receives an OVL rating of 5, for example, it becomes restricted to processing just five orders per day. For merchants counting on the promotion to boost sales, this limitation represents a substantial business challenge.
Understanding OVL Triggers
OVL restrictions typically activate when a store's "seller-initiated cancellation rate" exceeds platform thresholds. Importantly, "seller reasons" encompass more scenarios than merchants might realize:
- Active Cancellations: When sellers cancel orders due to pricing errors or inventory shortages
- Passive Cancellations: Automatic cancellations when sellers miss shipping deadlines or when packages fail to reach sorting centers on time
The second scenario proves particularly problematic. Even when tracking shows packages delivered to sorting centers, delays in scanning procedures (often due to facility congestion) can still trigger cancellations that count against sellers.
Preventative Measures Against OVL
Proactive management can help sellers avoid OVL restrictions:
- Prioritize immediate order processing after sales
- Monitor logistics closely, especially near shipping deadlines
- Verify with couriers that packages reach sorting centers rather than temporary holding locations
- Contact Lazada support promptly when facing potential deadline issues
OVL Implementation Details
Restriction severity depends on cancellation rates and varies by regional marketplace:
- Malaysia, Singapore, Philippines, Indonesia, Vietnam: 5% cancellation rate threshold
- Thailand: 10% cancellation rate or seller ratings below 70 over eight weeks
Daily order limits calculate as a percentage of the store's four-week average, meaning higher cancellation rates yield stricter limitations.
Special Considerations During Peak Periods
Platforms may adjust thresholds during high-volume periods. Between February 1 and March 31, for instance, Lazada reportedly lowered the OVL trigger from 5% to just 2% cancellation rates due to Lunar New Year operational challenges.
Strategies for Restriction Removal
OVL metrics typically refresh weekly. Sellers can accelerate restriction removal by:
- Increasing total order volume to dilute cancellation percentages
- Encouraging buyers to initiate cancellations when necessary, then documenting these requests for platform support
Effective order management and policy awareness remain critical for sellers navigating platform requirements during major sales events.