Penalty structure

1. How is your payout
calculated?
In this module we will discuss:
1. How is your payout calculated?
2. How can you check your commission details?
3. What are the different modes of logistics?
4. How can you measure the weight of the packed product?
5. What are the logistic charges at Paytm Mall?
6. What are the different types of fraud?
7. What is a service level agreement (SLA)?
8. How to avoid penalties?
9. How is payout calculated?
10. How can you check your expected payout on the Paytm Mall seller panel?

2. How is your payout calculated?
• Final payout to you is made after the various commissions & fee are deducted from the selling
price
• The components which are deducted from the selling price are as follows-
Charges Definitions Rates
Marketplace commission
Fee charged for listing your products on
Paytm Mall marketplace
Marketplace commission is a
percentage of selling price,
varies at category/ product level.
Payment gateway
Fee paid for transfer of money via
Paytm Mall payments gateway
Payment gateway (PG)
commission is 2.7% of selling
price
Logistics charges
Charges for using services of Paytm
Mall logistics partners
Logistics charges are charged
based on modes of shipment.
Penalty
Fraud is a deliberate action of deceiving
Paytm Mall to secure unfair gain which
may cause financial, brand image, or
other damages to Paytm Mall or its
partners.
Depends on type of fraud

3. How can you check your commission details?
You can download your agreement history by going to seller panel in which you can read terms and
conditions along with commission details of your products
Order Processed
Click on Profile
Click on agreement
history
Click on ”click to
download”
1
2
3
2.
3.
1.
Note- You have to download the latest version of the agreement history.

4. What are the different modes of logistics ?
Express shipment
• Standard sized shipments (less than 5 kg) which are serviced through air mode
Local shipment
• These are intra city shipments i.e. whose pick up & drop location fall in same city
Zonal shipment
• All pin codes assigned to specific zones (north, south, east, west), if pick up and
delivery fall in same zone (not in cities) zonal rates will be charged
Metro shipment
• Rates will be applicable for one of the cities Delhi (NCR),Bangalore, Hyderabad, Kolkata,
Chennai, Mumbai where delivery happens
National shipment
• These are inter zone shipments i.e. whose pick up & delivery pin code fall in different
zones

5. What are the logistics charges at Paytm Mall?
Below are the weight slab rates for logistics in Paytm Mall
Revised shipping charges
Express
Weight Local Zonal Metro National
First 500 Grams Rs 35 Rs 45 Rs 55 Rs 60
Additional 500 Grams Rs 25 Rs 35 Rs 45 Rs 55
Surface
Up to first 3 Kg Rs 90 Rs 100 Rs 110 Rs 120
Additional kg 3-10 Kg Rs 18 Rs 20 Rs 23 Rs 25
Additional kg 10-30 Kg Rs 15 Rs 18 Rs 20 Rs 23
Additional kg 30-60 Kg Rs 10 Rs 12 Rs 15 Rs 20
Additional kg >60 Kg Rs 8 Rs 10 Rs 12 Rs 15
Note- All the fee mentioned above is exclusive of taxes.

6. • Weight of a product can be calculated in 2 ways: dead weight and volumetric weight
• The higher of the 2 is used to calculate the logistic charges
How can you measure the weight of the packed
product?
Dead weight = weight of
package
Length 5 inches
Width 6 inches
Height 4 inches
Volumetric
weight
393.28 Grams
Volumetric weight in grams =
(𝑙𝑒𝑛𝑔𝑡ℎ × 𝑏𝑟𝑒𝑎𝑑𝑡ℎ × ℎ𝑒𝑖𝑔ℎ𝑡 × 2.543
)
5
Note: length, breadth and height in
inches
Weight of the packet measured on
the weighing machine = 900
grams
Dead weight = 900 Grams
Weight
Volumetric
weight
Deadweight
Formula Example
In this case dead weight will be considered, since it is greater than the
volumetric weight

7. Example 1. If the weight of your product is 5 Kg
Revised shipping charges
Surface
Slab Charges Weight
breakup
Calculation Final
Up to first 3 Kg Rs 90 3 Kg 90 90
Additional kg 3-10 Kg Rs 18 2 Kg 18*2 36
Total 5 Kg Rs 126
How can you calculate logistic charge?
Note- All the fee mentioned above is exclusive of taxes.

8. Example 2. If the weight of your product is 20 Kg
Revised shipping charges
Surface
Slab Charges Weight
breakup
Calculation Final
Up to first 3 Kg Rs 90 3 Kg 90 90
Additional kg 3-10 Kg Rs 18 7 Kg 18*7 126
Additional kg 10-30 Kg Rs 15 10 Kg 15*10 150
Total 20 Kg Rs 366
How can you calculate logistic charge?
Note- All the fee mentioned above is exclusive of taxes.

9. How can you calculate logistic charge?
Example 3. If the weight of your product is 35 Kg
Revised shipping charges
Surface
Slab Charges Weight
breakup
Calculation Final
Up to first 3 Kg Rs 90 3 Kg 90 90
Additional kg 3-10 Kg Rs 18 7 Kg 18*7 126
Additional kg 10-30 Kg Rs 15 20 Kg 15*20 300
Additional 30-60 Kg Rs 10 5 Kg 10*5 50
Total 35 Kg Rs 566
Note- All the fee mentioned above is exclusive of taxes.

10. Types of frauds Descriptions Penalties
Empty Box
Empty Box- When the parcel
contains other stuff like bricks,
stones, garbage etc instead of actual
product
Penalty will be
= GMV+Cashback+15000/(Litigation expenses)
If total such cases exceed 0.1% of total lifetime orders it will lead to
permanent delisting
Selling Fake
Fake Product- Selling fake branded
products, purchased from local
trolley without the authorization
Penalty will be
=GMV+Cashback+15000/(Litigation expenses)
Permanent Delisting from Paytm Mall platform
MRP mismatch
MRP mismatch- Altering the original
MRP
Penalty will be =
GMV+Cashback+15000/(Litigation expenses) and permanent
removal of respective product id from Paytm Mall seller panel
If there are multiple such occurrence – Permanent Delisting from
Paytm Mall platform
What are the different types of fraud?
Note- 1. This is an illustrative list and doesn’t include all cases.
2. Paytm Mall reserves the right to block your seller account or to disable your listings depending on the severity of
the case.

11. Types of frauds Descriptions Penalties
Self ordering
Self ordering- For taking advantage
of the offers and promotions which is
meant for other genuine customers
Penalty will be
= 3*GMV+cashback+15000/(Litigation expenses)
No response
No response- When you don’t
process order and order crosses the
SLA
Penalty will be
= SLA breach penalty + Cancellation penalty
Seller
cancellation
Seller cancellation – If you cancel
the order
Pre SLA seller cancellation
= Cancellation penalty
Post SLA seller cancellation
= SLA breach penalty + cancellation penalty
What are the different types of fraud?
Note- 1. This is an illustrative list and doesn’t include all cases.
2. SLA breach penalty and cancellation penalty are defined at product’s category level.
3. Paytm Mall reserves the right to block your seller account or to disable your listings depending on the severity of the case.

12. What is a service level agreement (SLA)?
Stages of orders Timestamp Penalties
Order placed on 8th Jan 2018 at 08:00 pm No penalty
SLA as agreed 2 days No penalty
Order to be moved to “To handover” by On or before 10th Jan 2018, before 10:00 am No penalty
Order to be handed over & marked ‘Shipped’
by
On or before 10th Jan 2018, before 08:00 pm No penalty
Ship deadline (SLA breached) 10th Jan 2018 at 08:00 pm SLA breach penalty
Grace period of 1 day 11th Jan 2018 at 08:00 pm SLA breach penalty
Extended deadline (Auto cancelled) 11th Jan 2018 at 08:00 pm SLA breach penalty + cancellation penalty
Every Seller needs to ensure that all the orders are marked Shipped within SLA, so handover the
product 1 day before the SLA date.
Here is an example to help you understand this better:
A service level agreement (SLA) is your promise to ship your products to your customers within a
certain number of days
Note- 1. If SLA is breached , the order will be cancelled and you will be charged a SLA breach penalty and a cancellation penalty.
2. SLA breach penalty and cancellation penalty are defined at product’s category level.
3. Avoid SLA breaches as they affect your seller ratings and performance on Paytm Mall.

13. Penalty structure
Note- 1.These charges are exclusive of taxes
2. Minimum penalty amount will be Rs.50 on both SLA breaches and Cancellations by Seller
*Not applicable to offline, international, cars & bikes & FC aligned sellers.
SLA breach penalty and cancellation penalty are defined at product’s category level

14. How to avoid penalties?
Avoid Penalties
• Maintain physical stock of products
• Add inventory only if you have its
physical stock
• Procure genuine products only
• You must have authorizations from
brands for all products
• Ship products with an MRP sticker
• Always match MRP of product with the
MRP listed in your catalogue
• Ensure that the warranty you offer on
the product is valid
• Maintain record of purchase • Do not indulge in fraudulent methods to
obtain induced orders.

15. How is payout calculated?
Final payout to you is made after the various commissions & fee are deducted from the selling price
Payout
Selling price Rs 1000
(-) Marketplace commission Rs 124.3 (12.43% *1000)
(-) Payment gateway fee @2.7% Rs 27 (2.7%*1000)
(-) Logistic charges Rs 50 (500 grams)
= Payout breakout Rs.754.85 [1000-(124.3+27+50+36.23+7.62)]
Example : Product- Men’s T-shirt
DEDUCTIONS
Rs 0(-) Additional minor deduction/penalty
(-) GST@ 18% Rs 36.23 [18%*(124.3+27+50)]
Rs 7.62 [1%*(1000-(124.3+27+50+36.23))]TCS (1%) on base price

16. How can you check your expected payout
on the Paytm Mall seller panel?
Click on catalogue tab
Click on edit icon
1.
2.
Order Processed
1
2
You can check your expected payout amount through the payout calculator

17. Click on the calculator
icon
3.
3
How can you check your expected payout
on the Paytm Mall seller panel?

18. Enter the MRP & selling
price
4.
4
5
Click on re-calculate
button
5.
How can you check your expected payout
on the Paytm Mall seller panel?

19. View the payout break
up here
6.
6
How can you check your expected payout
on the Paytm Mall seller panel?

20. Thanks everyone!
For any query please raise a ticket on support