How is your payout calculated

1. How is your payout calculated?
In this module, we will discuss :
1. Various deductions from the selling price
2. How can you check your commission details?
3. Different modes of logistics
4. Measuring the weight of a packed product
5. Rates for logistics charges at Paytm Mall and its calculation
6. Various types of frauds
7. Understanding SLA breach and Penalty structure
8. How to avoid penalties?
9. How is your payout calculated?
10. Steps to check your expected payout on the Paytm Mall seller panel

2. Various deductions from the selling price
Your final payout is made after various commissions & fee deductions 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 the Paytm Mall marketplace. It Is X% of the selling price(varies at the category/product level)
Payment gateway Fee paid for the transfer of money via Paytm Mall payments gateway. It is 2.7% of the selling price
Logistics charges Charges for using the services of Paytm Mall logistics partners. This is charged based on the mode of shipment
Fixed Closing Fee
This fee is charged on every successful sale on Paytm Mall's marketplace platform that is successfully delivered to a customer. This fee does not
apply to orders that are returned or cancelled and varies based on the product price range. All the fee mentioned below is exclusive of taxes
Penalty A fraud is a deliberate action of deceiving Paytm Mall or its partners to secure unfair gains. Penalty rates depends on the type of fraud
TCS
It is a Govt.-authorized Tax that is deducted from your payout and deposited to the govt. It is charged as 1% of the base price
(selling price - applicable GST on the product)
TDS
Tax Deducted at Source (TDS) under section 194-O mandates e-commerce companies to deduct TDS on sales of goods and services through their platform.
This will be effective from 1 October 2020. The rate of TDS applicable will be 0.75% (of the base selling price) from October 1 2020 to 31 March 2021 and will be
1% (of the base selling price) post 31st March 2021. However, in cases wherein the PAN is unavailable or invalid, TDS at 5% will be applicable
Selling Price Range (₹) Fixed Closing Fee (₹)
0-500 2
501 to 2000 5
2001-5000 10
Above 5000 15

3. Checking your commission details

4. How can you check your commission details?
Click on Profile
You can download your agreement history by going to the seller panel, where you can read the terms and conditions along
with the commission details of your products
Click on Agreement History and then ‘Click To Download’
Note – You have to download the latest version of the agreement history

5. Understanding logistics charges and
its calculation

6. Different modes of logistics
Express shipment
Standard sized shipments (less than 5 kg) which are serviced through
the aerial mode
Local shipment
These are intra-city shipments i.e. whose pickup & drop locations fall
in the same city
Zonal shipment
All pincodes assigned to specific zones (north, south, east, west). If
pickup and delivery fall in the same zone (not cities), zonal rates will be
charged
National shipment
These are inter-zone shipments i.e. whose pickup & delivery pincodes
fall in different zones

7. Measuring the weight of a packed product
The weight of a product can be calculated in 2 ways - dead weight and volumetric weight. The higher of the two is used to
calculate the logistic charges
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
Dead
weight
Formula Example
In this case, the dead weight will be considered since it is greater than the volumetric
weight

8. Rates for logistics charges at Paytm Mall
Below are the weight slab rates for logistics in Paytm Mall
Forward shipping charges
Express
Weight Local Zonal National
First 500 grams ₹ 38 ₹ 48 ₹ 69
Additional 500 grams ₹ 26 ₹ 24 ₹ 40
Additional per 500 grams ₹ 32 ₹ 35 ₹ 61
Surface
Up to first 1 Kg ₹ 46 ₹ 62 ₹ 82
Up to first 2 Kg ₹ 62 ₹ 77 ₹ 105
Up to first 3 Kg ₹ 75 ₹ 100 ₹ 130
Additional 3-5 Kg (charge per kg ) ₹ 17 ₹ 24 ₹ 35
Additional 5-10 Kg (charge per kg ) ₹ 16 ₹ 14 ₹ 32
Additional 10-30 Kg (charge per kg ) ₹ 11 ₹ 13 ₹ 27
Additional 30-60 Kg (charge per kg ) ₹ 11 ₹ 13 ₹ 27
Additional kg >60 Kg (charge per kg ) ₹ 10 ₹ 9 ₹ 27
Note - All the fee mentioned above is exclusive of taxes. For more details click here
- In case of any issue with Logistic Charges or Product Weight, a request to be raised for assistance within 3 months of the Order date. Any
query/dispute raised after this timeline will not be entertained and courier fee charged will be deemed to be final

9. Calculating logistics charges
Note – All the fee mentioned above is exclusive of taxes
Example 1. If the weight of your product is 250 gm
Shipping charges
Express
Slab Local Charges Weight breakup Calculation Final
First 500 Grams ₹ 38 250 gm 38 38
Total 250 gm ₹ 38
Example 2. If the weight of your product is 700 gm
Shipping charges
Express
Slab Local Charges Weight breakup Calculation Final
First 500 Grams ₹ 38 500 gm 38 38
Additional 500 Grams ₹ 26 200 gm 26 26
Total 700 gm ₹ 64

10. Calculating logistics charges
Note – All the fee mentioned above is exclusive of taxes
Example 3. If the weight of your product is 1.2 kg
Shipping charges
Express
Slab Local Charges Weight breakup Calculation Final
First 500 Grams ₹ 38 500 gm 38 38
Additional 500 Grams ₹ 26 500 gm 26 26
Additional per 500 grams ₹ 32 200 gm 32 32
Total 1.2 Kg ₹ 96
Example 4. If the weight of your product is 5 kg
Shipping charges
Surface
Slab Local Charges Weight breakup Calculation Final
Up to first 3 Kg ₹ 75 3 Kg 75 75
Additional 3-5 Kg (charge per kg) ₹ 17 2 Kg 17*2 34
Total 5 Kg ₹ 109

11. Example 5. If the weight of your product is 20 kg
Shipping charges
Surface
Slab Local Charges Weight breakup Calculation Final
Up to first 3 Kg ₹ 75 3 Kg 75 75
Additional 3-5 Kg (charge per kg ) ₹ 17 2 Kg 17*2 34
Additional 5-10 Kg (charge per kg ) ₹ 16 5 Kg 16*5 80
Additional 10-30 Kg (charge per kg ) ₹ 11 10 Kg 11*10 110
Total 20 Kg ₹ 299
Note – All the fee mentioned above is exclusive of taxes
Calculating logistics charges

12. Types of fraud

13. Various types of fraud
Note - 1. This list is just for illustrative purposes 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
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 No response Seller cancellation
Types of
fraud 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
If you don't process
order and order
crosses the SLA
If you cancel the order
Penalty 3*GMV + cash back + 15000/(Litigation
expenses)
GMV + Cashback + Claim (If
paid) + 15000/ (Litigation
expenses)
GMV + Cashback +
15000/ (Litigation
expenses)
SLA breach penalty +
Cancellation penalty
Pre SLA seller cancellation =
Cancellation penalty
Post SLA seller cancellation=
SLA breach penalty +
cancellation penalty

14. Understanding SLA breach and
Penalty structure

15. What is a service level agreement (SLA)?
A Service Level Agreement (SLA) is your promise to ship your products to your customers within a certain number of days.
You have to ensure that all the orders are marked Shipped within SLA.
Example:
Note- 1. If SLA is breached, the order will be cancelled and you will be charged an SLA breach penalty and a cancellation penalty
2. SLA breach and cancellation penalties are defined at the category level of the product
3. Avoid SLA breaches as they affect your seller performance on Paytm Mall
STAGES OF ORDERS TIMESTAMP PENALTIES
Order placed on 8th Oct 2020 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 Oct 2020 before 12:00 am No penalty
Order to be handed over & marked ‘Shipped’
by
On or before 10th Oct 2020 before 08:00 pm No penalty
Ship deadline (SLA breached) 10th Oct 2020 at 08:00 pm SLA breach penalty
Grace period of 1 day 11th Oct 2020 at 08:00 pm SLA breach penalty
Extended deadline (Auto cancelled) 11th Oct 2020 at 08:00 pm SLA breach penalty + cancelation penalty

16. Penalty structure
The SLA breach and cancellation penalties are defined at the category level 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 and minimum SLA breach penalty amount. This means
that the seller will be charged the higher of the minimum penalty amount OR Y%/X% of SP
Note - 1. The minimum penalty amount will be Rs.35 on both SLA breaches and Cancellations by the Seller
2. These charges are exclusive of taxes

17. How to 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 the MRP of the product
with the MRP listed in your catalogue
• Ensure that the warranty you
offer on the product is valid
• Maintain a record of purchases • Do not indulge in fraudulent methods
to obtain induced orders
Avoid Penalties

18. How is your payout calculated?

19. Understanding Payout calculation
Your final payout is made after the various commissions & fee deductions from the selling price
Note - The rate of TDS is 0.75% from 1 October 2020 to 31 March 2021 and 1% thereafter. However, in cases wherein the PAN is unavailable or invalid, TDS at 5% will be applicable. For more details click here
- 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 timeline will not be entertained and the commission charged will be
deemed to be final and accepted
- In case of any issue with Logistic Charges or Product Weight, a request to be raised for assistance within 3 months of the Order date. Any query/dispute raised after this timeline will not be entertained and courier fee
charged will be deemed to be final
Payout
Selling price ₹ 1000
(-) Marketplace commission (e.g. 12.43%) ₹ 124.3 (12.43% *1000)
(-) Payment gateway fee @2.7% ₹ 27 (2.7%*1000)
(-) Logistic charges ₹ 38 (500 grams)
(-) Fixed closing fee (as per product price) ₹ 5
Example : Product- Men’s T-shirt
DEDUCTIONS
₹ 0
(-) Additional minor deduction/penalty
(-) GST@ 18% ₹ 34.97 [18%*(124.3+27+38+5)]
₹ 9 [1%*(Selling price- applicable GST on the product)]
(-) TCS (1%) on base price
= Final Payout ₹ 755.03 [1000-(124.3+27+38+5+34.97+9+6.7)]
₹ 6.7 [0.75%*(Selling price- applicable GST on the product)]
(-) TDS (0.75%*) on base price

20. Checking your expected payout on
the Paytm Mall seller panel

21. Steps to check your expected payout
Click on the Catalogue tab
You can check your expected payout amount through the payout calculator
Go to the product

22. Click on the Calculator icon
Steps to check your expected payout
Click on the Edit icon of selling price

23. Enter the MRP & selling price
Click on the Re-calculate button
View the expected payout break-up here
Steps to check your expected payout

24. Thanks everyone!
For any query, please raise a ticket using the Seller Helpdesk tab on
your seller panel.