Sellers on Lazada, Southeast Asia's prominent e-commerce platform, now face new restrictions on the number of products they can list, with limits directly tied to store performance metrics. The policy change, effective since March 31, 2022, requires merchants to strategically manage their inventories or risk having excess products removed from the platform.
Performance-Based Listing Limits
The platform now dynamically adjusts maximum product listing allowances for each store based on historical sales data and store categories. High-performing stores gain increased listing capacity, while others must streamline their offerings. Notably, these limits apply at the Stock Keeping Unit (SPU) level rather than individual product variations. A single product with multiple color or size options counts as one listing.
Key Performance Indicators
Lazada evaluates stores using three primary metrics to determine listing allowances:
- Active Products: The count of distinct products that have generated at least one order (measured at SPU level).
- Order Volume: The total number of unique orders placed through the store.
- Customer Base: The number of unique consumers who have purchased from the store.
Enforcement and Consequences
The policy applies uniformly across all Lazada country sites and affects international sellers. Daily updates to listing limits mean stores exceeding their allowance cannot add new products until the next refresh. More significantly, the platform removes excess products through monthly enforcement actions at month-end.
For example, a Malaysian store allocated 1,000 product listings but currently showing 1,129 active items would see 129 products automatically delisted during the next enforcement cycle.
Delisting Prioritization Criteria
Lazada employs a multi-factor evaluation system to determine which products to remove when stores exceed limits:
- Low sales performance
- Extended periods without product updates
- Low product page view counts
- Older product creation dates
The platform first targets products meeting all three criteria: less than 1,000 views in 90 days, no sales during that period, and no edits within 30 days. Removal proceeds chronologically from oldest to newest until the store complies with its limit.
Strategic Recommendations for Sellers
Merchants can adopt several approaches to maintain their product visibility:
- Regularly update product information and enhance listing quality
- Implement marketing initiatives to boost sales and store activity
- Prune underperforming products to prioritize high-potential items
- Monitor store metrics closely to inform operational adjustments
This policy shift reflects Lazada's broader initiative to elevate platform-wide product quality and operational efficiency. While presenting challenges for some sellers, the changes create opportunities for merchants who optimize their store performance and product competitiveness.