What is the best software for payment reconciliation of e-commerce industry?

In order to understand if the payment has been made, sellers must take into account the deductions that the marketplace makes before paying the seller. Following are examples of the types of deductions that marketplaces like Flipkart or Amazon make:

  1. Commission: If the seller is selling through Amazon, then Amazon will cut a commission for itself for marketing and selling the seller’s product.
  2. Payment/Closing fee: The marketplace may also have additional charges like ‘closing fee’ on each product.
  3. Shipping charges: Nowadays most of marketplaces provide shipping services to their sellers and deduct the shipping charges from the payment due to the seller for the sale. Often sellers experience that inadvertent errors in the recording of the product leads to the marketplace overcharging for shipping.
  4. Storage/Warehousing fee: If the seller chooses to avail the storage services of the marketplace, then an extra fee of ‘storage or warehousing fee’ may be applicable.
  5. Discounts: Discounts can either be offered by the seller directly, or by the marketplace. The marketplace is entitled to deduct the discount before making the payment to the seller. In turn, the seller must be careful to see that the marketplace does not deduct from what’s due to him, value of the discounts offered by the marketplace.
  6. Statutory Taxes: All applicable statutory taxes, including service tax applicable on shipping services etc., will also be deducted by the marketplace before remitting the payment to the seller.

In addition to the above, at times the marketplace may have missed out on paying for some orders, which are also known as ‘unremitted orders’.

A seller can use the services of an automated payment reconciliation system like StyleMyCatalog, which would use pre-optimised processes and design expertise to break down your net payments in various ways.

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