Online sellers for compensating them for the sale of the product, place their trust in ecommerce marketplace payment practices. But these online sellers lack an effective mechanism through which they can check the glitches in the marketplace’s payment system.
Generally, orders through ecommerce marketplaces ( Amazon, Flipkart, ebay) etc. may reach the seller in order of 1, 2, 3 and 4. But the payments for these orders are acquired by the ecommerce sellers only as per the marketplace’s sales channel’s payment cycle, i.e. may be the payment of the 4th order is received first while that of the 1st order is received last. Also, while paying the online sellers, the marketplace also deducts certain commissions, service charges, taxes and penalties as per specific cases.
Below are the types of deductions that marketplaces like Flipkart/Amazon/ebay make-
- Commission- Sellers dealing through the online marketplaces need to pay a commission amount. This is charged by these online marketplaces for marketing and selling the products.
- Payment/Closing fee- Marketplaces may also charge an additional amount like ‘closing fee’ on each product from the sellers for closing the deals.
- Shipping charges- Online sellers are also required to pay the shipping charges and pick and pack fees that the marketplaces charge for providing the shipping services. Often sellers experience that, inadvertent errors in the recording of the product lead to shipping overcharges.
- Warehouse fees- In case an online seller choose to avail the storage services of the marketplace, then they are required to pay an extra ‘ storage or warehousing fee’.
- Discounts- One of the deductions are discounts that can either be offered by the seller or by the marketplace. The marketplace is authorised 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 after providing the discount.
- 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.
Apart from the above-mentioned deductions, the marketplace might deduct some missed out payments which are also known as ‘ unremitted orders’.
With so many deductions in place, it can become difficult for an online seller, to track whether or not the individual product going out from the warehouse has been accounted for in the payment or not. If a seller is listed on more than one marketplaces, he might face difficulty in keeping account of the money he is supposed to get from an ecommerce marketplace/marketplaces.
This can become a major problem, especially if the money coming in is supposed to be routed back into the business. For example- If the payment cycle for a marketplace and the logistic provider or wholesaler is not in sync, it can lead to troubles for an online seller.
It is therefore required that a sturdy system, one that handles all the payment reconciliation, is acquired by the Amazon seller/ ebay seller/ Flipkart seller and sellers on other marketplaces.The best aid in this case would the Easy payment reconciliation services provided by enewcleus, your Virtual Marketplace Manager.
With enewcleus, eliminate discrepancies in orders fulfilled and payments received, when selling online, by acquiring our Payment Reconciliation services.
What you will get to know with us?
You will get to know-
- Transfer price and vendor price estimation.
- Exact deduction of marketplace in case of returns.
- Seller support in case of lesser amount credit from marketplaces.
- Keeping clients updated on the exact amount they are getting on the actual sales.
So, acquire the ecommerce Payment Reconciliation services from enewcleus for hassle free marketplace management and consequently multiply sales by selling your product across multiple marketplaces. Sell Easy, Sell More.