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Six reasons your marketplace payout is lower than your sales

Perspective

Commissions, returns, weight slabs and missed claims quietly cut what Amazon, Flipkart and Meesho actually pay you. Here is where the money usually goes.

Most online sellers know their sales figure to the rupee. Far fewer know how much of it actually reached their bank account, and why the rest didn't. On a busy marketplace account, small differences on each order add up to a meaningful share of revenue every month.

Where the money usually goes

  1. Short settlements. An order is delivered, but the payout is lower than the selling price less the agreed fees, or the order is not paid at all.
  2. Commission at the wrong rate. Commission depends on category and price band. A product mapped to the wrong category can be charged a higher rate on every sale.
  3. Fixed, collection and closing fees. These change from time to time and are easy to miss when they are applied incorrectly.
  4. Shipping weight slabs. If the marketplace records a higher weight or volumetric weight than the actual package, every shipment is billed at a higher slab.
  5. Returns and RTO. A customer return or return-to-origin shipment can come back without the credit, or the credit can be missing even though the product was returned.
  6. Missed claim windows. Marketplaces set time limits for raising most claims. An overcharge found six months later is usually too late to recover.

Why it goes unnoticed

Settlement reports are long, use the marketplace's own order and transaction IDs, and come in a different format for every portal. Checking them by hand against sales records rarely goes beyond a sample, so repeated small errors are never seen.

What helps

  • Reconcile every order, not a sample, at least once a month.
  • Check commission and fee rates against the marketplace's current rate card for each category.
  • Weigh and photograph packages for high-volume SKUs, so weight disputes are backed by evidence.
  • Track every return until either the product or the credit is received.
  • Raise claims as soon as an issue is found, within the marketplace's time limit.

The aim is simple: know your true realisation on every order and SKU, and stop paying for errors that are not yours.

This article is for general information only and is not professional advice. Speak to us about how it applies to your business.

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