With such rapid growth, e-commerce markets are no longer a viable option for retailers, but a strategic way to grow their businesses. With the availability of many e-commerce payment reconciliation software solutions, it has become much easier for marketers to enter the street markets and start selling.
However, finding and tracking online payments is a major challenge that many retailers still face today. The immediate question that comes to mind is - Are marketers making money?
Each market has its commission structures, payment terms, fees, refund policies, penalties, and other costs. It is difficult for a retailer to keep track of several items in multiple markets, especially the reductions made by markets like Amazon and Flipkart before paying their retailers.
Types of withdrawals made by markets
Commission Fee - Fees charged on the markets for marketing and selling a retailer's product
Closing fee - The additional fee charged for each product sold
Shipping fee - It is the shipping fee that is deducted from the payment if the seller approves the delivery services provided to the market
Storage fee - It is the storage fee charged if the seller receives market maintenance and storage services
Discounts - Discounts offered by retailers directly, or on the market are deducted from the final payment
Violation of service level agreement and penalties
One of the most important costs imposed on markets by retailers is ‘Penalty’. The seller enters into a Service Level Agreement (SLA) with the markets where the service is officially defined at the time of purchase, delivery time, obligations of both parties, etc. If the seller does not comply with the service standards in terms of each SLA, then the markets have a right to charge.
For example, on Amazon, if an order is canceled by the seller for any reason other than the buyer's request the seller will be penalized with 8.5% of the value of the item as a cancellation fee for completed merchant orders.
While the SLA is important in setting good service standards, defines liabilities and obligations, and manages the expectations of all stakeholders, the problem arises when the seller is not at fault and is liable for fines.
For example, if the seller confirms and packs the product on time but the commodity partner forgets to update the system on his system after selecting it, then it will also be considered a breach of the SLA and the market will penalize the seller.
In such a case, the seller needs to keep all the evidence so that he can get a refund.
Without an effective payment management system, it is easy to lose track of payments given a large number of transactions, shipping difficulties, and don’t forget, it comes back. Because of this, there are huge losses that retailers add to without knowing the reason. Scary right?
Read More: Know About Payment Reconciliation And Its Business Value
Payment Reconciliation Methods
So what options do marketers have for keeping their interest at heart? Let's look at some of the ways eCommerce payments can be synced:
Market Trader Dashboard
Each market offers its sellers a merchant panel that records all the information by looking at the goods sold and the payments received.
This type of eCommerce payment system only works if the merchant is present in a single market.
As the business grows, the retailer rides in more markets because the number of dashboards goes up, making the entire payment tracking process more difficult.
Manual Recording in Excel Spreadsheets
While spreadsheets are an excellent tool for data editing and critical analysis, they may not be the best tool for eCommerce payment reconciliation.
If you are a small retailer with limited products in a few markets then an outstanding sheet might work but if you are a growing business then a spreadsheet may not be a tool that works well for you over time.
Payment Reconciliation Program
Reconciliation and payment software on the market helps merchants easily track their payments for each order received.
It allows retailers to control, drive cost-effectiveness, increase efficiency, and have a greater understanding of their financial details than high-quality manual labor.
Payment / deduction tracking can be easily tracked with a standard eCommerce payment reconciliation system:
Overcharging of the Commission
It depends on the product category and is calculated using the percentage of total unit price. Products in different categories have a lower transfer cost for each item.
The system enables you to detect improperly charged commissions and provide similar details
Charged Shipping
Markets charge a fee for sending an order from the warehouse to the Customer's address, depending on the size, weight of the product, and location of delivery.
They decide on the shipping category (Small, Standard, Excess Size, etc.) Depending on the size of the product. If the shipping category is incorrectly recorded, the system helps to identify and synchronize those overcharged billing fees.
Charge over Pick-Pack
This fee includes the cost of returning it, installing it, and shipping it. The system provides a report on all those orders when the markets get the wrong size and are then charged incorrectly
List Lost without Refund
In some cases of deficit, even if the purchased item is returned by the customer, the market may refund to the buyer but the inventory is not returned to the fulfillment center.
In the same way, the seller must be able to track and demand a refund - but he cannot.
The system assists in providing real-time information on such orders for which returns are made, identifying their status and helping to claim both payments and deposits
Carrier Damaged Without Repayment
Markets must reimburse retailers for any damage that may have occurred during product shipment through their partner carrier.
If this does not happen, you can file charges and claim a refund using the report provided by the program
Replacement without refund
The seller may not receive payment for all items shipped as part of the order or by replacement order made by the customer.
The system records all transactions and provides a report of such orders the seller receiving little or no payment
Conclusion
E-commerce is a much-needed and risky business and an online payment reconciliation is very important. See how you can track your payments through our Online Payment Reconciliation System Software.
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