Business Model Canvas (BMC)- A new venture concept
How seller payout is calculated - Wholesale
1. Howis your payout calculated?
In this module, we will discuss:-
1. How your payout is calculated?
2. How can you check your commission details?
3. What are the different modes of logistics?
4. What are the logisticscharges at Paytm Mall?
5. How can you measure the weight of a packed product?
6. What are the different types of frauds?
7. What is a service level agreement (SLA)?
8. How to avoidpenalties?
9. How is your payout calculated?
2. How is your payout calculated?
Your final payout is made after variouscommissions & fee deductions from the selling price.
The componentswhich arededucted from theselling price areas follows -
Charges Definitions Rates
Marketplace commission
Fee charged forlisting yourproductson the PaytmMall
marketplace
% of the selling price (varies atthe
category/productlevel)
Paymentgateway
Fee paid forthe transfer of money via PaytmMall
paymentsgateway
2.7% of theselling price
Logistics charges
Charges forusing the services of PaytmMalllogistics
partners
Based on themode of shipment
Penalty
A fraud is a deliberate action of deceivingPaytmMallor
its partners to secure unfairgains
Dependson the typeof fraud
3. How can you check your commissiondetails?
Click on Profile
You can download your agreementhistoryby going to theseller panel, where you can readthe termsand conditions along with the
commission details of yourproducts
Click on AgreementHistory
4. How can you check your commissiondetails?
Click on ‘ClickTo Download’
Note – Youhaveto download the latest version of the agreement history
5. What are the different modes of logistics ?
Expressshipment
Standard sized shipments (less than 5 kg) which areserviced through the aerial mode
Localshipment
These are intra-city shipmentsi.e. whosepickup & drop locationsfallin the same city
Zonalshipment
All pin codesassigned to specific zones (north, south, east, west). If pickup and delivery
fallin thesame zone (notcities), zonalrates willbe charged
Nationalshipment
These are inter-zoneshipments i.e. whosepickup & delivery pin codesfall in different
zones
Metroshipment
Rates willbe applicableforoneof the cities Delhi(NCR),Bangalore, Hyderabad, Kolkata,
Chennai, Mumbaiwheredelivery happens
6. What are the logistics charges at Paytm Mall?
Below are theweight slab ratesfor Forwardlogistics inPaytmMall
Note – All thefee mentioned above is exclusiveof taxes.
– Incase of any issue with Logistic Charges or Product Weight, a request to be raised for assistance within 3 months of the Order date. Anyquery/dispute raised after this timeline will
not be entertained and courier fee charged will bedeemed to be final.
Forward shipping charges
Air (Express)
Weight Local Zonal Metro National
First 250 gms 25 30 42 42
First 500 gms 27 40 55 55
Additional per 500 gms 21 30 40 40
Surface
Upto 1 KG 30 39 46 50
Upto 2 KG 32 40 52 57
Upto 3 KG 37 44 57 66
Upto 4 KG 44 47 62 74
Upto 5 KG 44 47 62 74
More than 5 KG (Per KG) 7 9 12 14
7. What are the logistics charges at Paytm Mall?
Below are theweight slab rates for Reverselogistics inPaytmMall
Note – All thefee mentioned above is exclusiveof taxes.
– Reverse logisticscharges will becharged on return after deliveryorder (also known as DTO order)
Reverse shipping charges
Air (Express)
Weight Local Zonal Metro National
First 250 gms 45 55 70 70
First 500 gms 50 60 75 75
Additional per 500 gms 25 35 45 45
Surface
Upto first 1 KG 70 80 100 100
Upto first 2 Kg 80 100 125 125
Upto first 3 KG 90 120 150 150
Additional 3-10 Per KG 15 18 30 30
Additional 10-30 Per KG 14 17 28 28
Additional 30-60 Per KG 12 15 27 27
Additional > 60 Per KG 11 14 27 27
8. The weight of a product can be calculated in 2 ways - dead weight and volumetricweight. The higher of thetwo is used to calculate the
logistic charges
Deadweight = weight of package
Length 5 inches
Width 6 inches
Height 4 inches
Volumetric weight 393.28 Grams
Volumetric weightin 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
Deadweight = 900 Grams
Weight
Volumetric
weight
Deadweight
Formula Example
In this case, the dead weight will beconsidered since it is greater than the volumetric weight
How can you measure the weight of a packed product?
9. What are the different types of fraud?
Note- 1.This listis just for illustrative purposes and doesn’t includeall cases
2. Paytm Mall reserves the right to blockyour seller account or to disableyour listings depending on the severity of the case
Types of fraud
Dispatch/Delivery of Empty Box or
Fake/Duplicate/Defective/Partial/
Damaged/Used/Wrong Product or product of
lesser/inflated value
Self-Ordering / Seller Buyer Collusion MRP issues
If parcel has other things instead of the actual
product or selling fake branded products
purchased from local trolley without
authorization
Taking advantage of offers and promotions
meant for customers
Altering original MRP
Penalty
3*GMV + cash back+ 15000/(Litigation
expenses)
GMV + Cashback + Claim (If paid) + 15000/
(Litigation expenses)
GMV + Cashback + 15000/ (Litigation
expenses)
10. What are the different types of fraud?
Note- 1.This listis just for illustrative purposes and doesn’t includeall cases
2. Paytm Mall reserves the right to blockyour seller account or to disableyour listings depending on the severity of the case
Types of fraud
No response Seller cancellation
If you don't process order and order crosses the SLA If you cancel the order
Penalty SLAbreach penalty + Cancellation penalty
Pre SLA seller cancellation= Cancellation penalty
Post SLAseller cancellation= SLA breach penalty +
cancellation penalty
11. What is a service level agreement (SLA)?
A Service Level Agreement(SLA) is yourpromise to ship your products to your customerswithin a certainnumber of days. You have to
ensure thatall the ordersare marked Shipped within SLA.
Example:
Note-1.IfSLAis breached, the order will becancelled and you will be charged an SLA breach penalty and a cancellation penalty
2. The SLA breach and cancellationpenalties are defined at the category level of the product
3. AvoidSLAbreaches as they affect your seller ratings and performance on Paytm Mall
12. Penalty structure
The SLA breach and cancellation penalties are defined at the categorylevel of the product.
SLA breach penalty, ‘X%’ of selling price
All categories 3
Cancellation penalty, ‘Y%’ of selling price
All categories 7
There will also be a minimum cancellation penalty amount anda minimum SLA breach penalty amount. Thismeans that the seller will be
charged the higher of the minimum penalty amount OR Y%/X% of SP.
Note-1.Theminimum penalty amount will beRs.35 on both SLAbreaches and Cancellations by the Seller
2. These charges are exclusiveof taxes
3. As of now, SLABreach & Cancellation penalty will not be appliedon your orders. We would be reviewing your performance at regular intervals and accordinglypenalty imposition would be
decided.You would bepre-informed as to when this would become effective.
13. How is your payout calculated?
Your final payout is made after thevarious commissions & fee deductions from theselling price.
Note - Here,Commission includes the Paytm Mall commission, the PGfee and the logistics charges
- You can claimthe deducted TCS amount
- In case of any issue regrading Commission charged, a request should be raised with Support within 3 months of the order date.Any dispute after this timelinewill not be entertained and the
commission charged will be deemed to be final and accepted
Payout
Selling price Rs1000
Commission (Eg. 10%) (-) Rs100 (10% *1000)
GST (18%) (-) Rs18 (18%*100)
= FinalPayout Rs.873 [1000-(100+18+9)]
Example: Product-Men’ssportshoes
DEDUCTIONS
(-) Rs0Additionalminordeduction/penalty
(-) Rs9 [1%*(sellingprice- applicableGST on theproduct)]TCS (1%) on baseprice
14. How is your payout calculated?
On the seller panel, commission will be broken down into three components: (Marketplace Commission + Payment Gateway Fee + Forward Logistics
charge)
Case 1- If the sum of Payment Gateway Fee andForward Logistics charge does not exceed the decided commission value
Payout
Marketplace Commission (-) Rs 29
Payment Gateway Fee (2.7%) (-) Rs 27 (2.7%*1000)
Example: Product-Men’ssportshoes
(-) Rs 44Forward Logisticscharge as per weight slab (Eg. 5kg, Local shipment viasurface)
Rs 1000Sellingprice
(-) Rs 5.22 (18%*1)GST on Marketplace Commission (18%)
(-) Rs 4.86 (18%*27)GST on Payment Gateway Fee (18%)
(-) Rs 7.92 (18%*44)GST on Forward Logisticscharge (18%)
(-) Rs 9 [1%*(selling price-applicableGSTon the product)]TCS (1% on base price)
(-) Rs 0Additional minor deduction/penalty
= Rs 873Final Payout
DEDUCTIONS
15. How is your payout calculated?
Case 2- If the sum of Payment Gateway Fee andForward Logistics charge exceeds the decided commission valuethen Marketplace commission is
adjusted with a positivevalue and the overall deducted commission will be equal to the decided commission
Payout
Marketplace Commission (+) Rs 1
Payment Gateway Fee (2.7%) (-) Rs 27 (2.7%*1000)
Example: Product-Men’ssportshoes
(-) Rs 74Forward Logisticscharge as per weight slab (Eg. 5kg, National shipment via surface)
Rs 1000Sellingprice
(+) Rs 0.18 (18%*1)GST on Marketplace Commission (18%)
(-) Rs 4.86 (18%*27)GST on Payment Gateway Fee (18%)
(-) Rs 13.32 (18%*74)GST on Forward Logisticscharge (18%)
(-) Rs 9 [1%*(selling price-applicableGSTon the product)]TCS (1% on base price)
(-) Rs 0Additional minor deduction/penalty
= Rs 873Final Payout
DEDUCTIONS
