My niece did a DNA test on 23andme which returned a surprisingly low shared percentage to me of 1.21%. For niece/nephew 23andme says the range should be 17-34%. We are of Ashkenazi heritage so we expect to share DNA with lots of people due to endogamy, which could account for non-zero sharing even if we aren't actually closely related genetically.
Are there reasonable explanations for this unexpectedly low shared percentage other than concluding we aren't genetically uncle/niece? For example could the occasional DNA test be flawed?