Does Shopee Product Delisting Affect Penalty Points in 2025?

Shopee product delisting is a common practice for sellers to remove outdated, non-selling, or incorrect listings from their store. However, many sellers are concerned about whether this action affects penalty points, which can impact their account status and seller performance. This article explores the relationship between product delisting and penalty points on Shopee, providing insights based on real cases and platform policies.

Problem Scenario

Many sellers mistakenly believe that simply removing a product listing will automatically avoid any negative consequences. However, Shopee has specific rules regarding product delisting, especially when it comes to maintaining a healthy store and meeting seller performance standards.

• A seller in Guangdong accidentally deleted several high-performing products without updating their inventory or informing customers, leading to a sudden drop in sales and customer complaints.
• Another seller in Zhejiang removed all listings during a product rebranding phase, resulting in a temporary suspension of their account due to low activity.

Underlying Logic

Shopee evaluates seller performance based on multiple factors, including product listing quality, customer satisfaction, and account activity. While product delisting itself may not directly trigger penalty points, repeated or unnecessary delistings can be seen as poor account management, potentially affecting seller ratings.

According to the latest Shopee Seller Policy (effective January 2024), sellers are required to maintain an active and relevant product catalog. Excessive delistings may lead to reduced visibility and potential penalties if they negatively affect customer experience.

Solution

To avoid any adverse effects on your seller account, follow these best practices:

• Update Listings Instead of Deleting: If a product is outdated but still relevant, update its title, description, or images rather than removing it entirely.
• Use Product Archive Function: Shopee allows sellers to archive products temporarily. Go to Seller Central > Inventory Management > Product List, select the product, and choose "Archive" instead of "Delete."
• Communicate with Customers: If you must delete a product, send a notification via Shopee Messages or use the "Product Discontinued" feature under Seller Central > Product Settings.
• Maintain Minimum Listing Requirements: Ensure your store always has at least 10 active products to maintain good account health.

Pitfall Guide

Here are some common mistakes that can lead to negative consequences:

• Deleting Products Without Notice: Sudden deletions can lead to customer dissatisfaction and complaints, which may result in penalty points.
• Over-Reliance on Delisting: If a product is not selling, consider optimizing it (e.g., adjusting price, keywords, or images) before deleting it.
• Failing to Monitor Account Health: Use Shopee’s Seller Performance Dashboard to track metrics like order defect rate and response time.

Comparison Table: Delisting vs. Archiving

Feature	Delisting	Archiving
Impact on Visibility	Removes the product from search and store	Keeps the product hidden but available for future use
Effect on Penalty Points	May indirectly affect account health if overused	No direct effect on penalty points
Customer Notification	Usually no automatic notification	Can send a message to inform buyers
Reactivation Time	Requires re-upload and approval	Quick reactivation without re-uploading

Conclusion

While product delisting itself does not directly trigger penalty points on Shopee, it can have indirect effects on seller performance if not managed properly. Sellers should prioritize updating or archiving products rather than deleting them outright. By following Shopee’s guidelines and using the available tools, sellers can maintain a healthy store while avoiding unnecessary risks.