Flipkart Marketplace – Settlements

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Flipkart Marketplace
Payment Settlement

Agenda
• Prerequisites for payment settlement
• Your payment cycle
• Payment release
• Payment settlement
• ‘Payments’ dashboard
• Settlement reconciliation
• Consolidated transaction details
• Invoices for Marketplace fees

• You are a registered seller on Flipkart Marketplace with a verified bank account.
• You have dispatched a Flipkart order.
• You are at the end of your payment cycle.
Prerequisites for payment settlement

• Flipkart Marketplace releases payment amounts every Monday, Wednesday, and
Friday.
• There could be some delay in money transfer even if you are at the end of your
payment cycle.
Payment release
Settlement amount for an order will be calculated on Total order Item value that
is Your selling price + Amount that you want to charge buyer for shipping
Below are the deductions
•Selling commission
•Shipping/reverse shipping fee (depending on weight and zone)
•Less fixed closing fee ( Total Order Item Value = > 500: 10 Rs , => 250: 5 Rs
& < 250 : zero )
•Applicable service tax

Payment settlement
How to understand the table
1. You dispatch the order (ABC123) worth Rs 499.
2. Flipkart charges you Rs 110.47 as Total Marketplace Fee.
3. Flipkart transfers Rs 388.53 (Settlement Value) to your bank account
following dispatch.
1. When an order is dispatched/delivered
The table below shows how a settlement is made for a dispatched/delivered product.
Order Item ID Order Item
Value (Rs)
Settlement
Value (Rs)
Settlement Date Total Marketplace
Fee (Rs)
ABC123 499 388.53 16-Dec-13 -110.47

2. When you cancel an order
The table below shows how a settlement is made when you cancel an order.
1. Buyer orders DEF123 worth Rs 1799.
2. You cancel the order.
3. Flipkart charges you Cancellation Fee (based on the stage at which you cancel
the order) Service Tax, and Fixed Fee.
4. Order Item Value is refunded to the buyer.
Payment settlement
Value (Rs)
Settlement
Value (Rs)
Settlement
Date
Refund (Rs) Total Marketplace
Fee (Rs)
DEF123 1799 -71.88 2-Dec-13 -1799 -71.88

3. When buyer cancels an order
The table below shows how a settlement is made when the buyer cancels an order.
Payment settlement
1. Buyer orders GHI123 worth Rs 29499.
2. Buyer cancels the order.
3. You are not charged any fees.
4. Order Item Value is refunded to the buyer.
Value (Rs)
Settlement
Value (Rs)
Settlement
Date
Fee (Rs)
GHI123 29499 2-Dec-13 -29499

● All figures are indicative and have been used for the purpose of
understanding.
● The three events for one order explained here may not show up in one
settlement report. You will get the consolidated report under ‘Transactions’.
Payment settlement
4. Others
The table below shows how a settlement is made if an order is marked for return
to origin (RTO).
Scenarios Order Item
Value (Rs)
Fee (Rs)
Settlement
Value (Rs)
1. Dispatch 1000 -100 900
2. Buyer refunded -1000 -1000
3. Order returned 100 100
Net gain 0 0

How to understand RTO table
1. You dispatch an order worth Rs 1000
• Flipkart charges you Rs 100 as Total Marketplace Fee.
• Flipkart transfers Rs 900 to your bank account following dispatch.
2. The order is not delivered
• Buyer is refunded Rs 1000 (Order Item Value).
3. The order is returned to you
• Flipkart transfers Rs 100 charged from you as Marketplace Fee to your bank
account.
Net gain
You are neither charged or paid for an RTO order.

4. Others
The table below shows how a settlement is made in case of return and refund
Payment settlement
Value (Rs)
Fee (Rs)
Settlement
Value (Rs)
1. Dispatch 1000 -100 900
2. Buyer refunded -1000 -1000
3. Order returned -150 -150
Net gain -250 -250
understanding.
● The three events for one order explained here may not show up in one
settlement report. You will get the consolidated report under ‘Transactions’.

How to understand return and refund table
1. You dispatch an order worth Rs 1000
2. Buyer returns the order
• Buyer is refunded Rs 1000 (Order Item Value).
3. The order is returned to you
• Flipkart charges you Rs 150 as Total Marketplace Fee (Reverse Shipping Fee +
Service Tax).
Net result
You are charged Rs 250 (Total Marketplace Fee).

Payment settlement
4. Others
The table below shows how a settlement is made in case of replacement/exchange
Value (Rs)
Fee (Rs)
Settlement
Value (Rs)
1. Dispatch (O1) 1000 -100 900
2. Dispatch (O2)
(replacement/exchange)
1000 -50 950
3. Adjustment (order level) -1000 -1000
4. Order returned (O1) -150 -150
Net
result
-300 -300
understanding.
● The four events explained here may not show up in one settlement report.
You will get the consolidated report under ‘Transactions’.

How to understand return and refund table
1. You dispatch an order (O1) worth Rs 1000
2. Buyer wants to replace/exchange the product
• You dispatch a new order (O2).
3. Adjustment (order level)
• Order Item Value is shown as refunded to the buyer to indicate that the new order is
a replacement/exchange for which the buyer does not pay anything.
4. O1 is returned to you
• Flipkart charges you Rs 150 as Total Marketplace Fee (Reverse Shipping Fee +
Service Tax).
5. Net result: You are charged Rs 300 (Total Marketplace Fee)

Your payment cycle
• If you are a tier-1 seller:
Flipkart will transfer money to your bank account 5 business days after dispatch.
For e.g., if your order is dispatched on 01.06.2014, you will receive payment on
07.06.2014, Sunday is considered as Non working day.
• If you are a tier-2 seller:
Flipkart will transfer money to your bank account 10 Business days after dispatch.
For e.g., if your order is dispatched on 01.06.2014, you will receive payment on
12.06.2014, Sunday is considered as Non working day.

‘Payments’ dashboard
Log in to your account and click the 'Payments' tab. You will get
'Statements', 'Transactions', and 'Invoices’ in the drop-down menu

Use of ‘Statements’ dashboard
• To know how much money Flipkart has transferred to your account.
• To reconcile your bank statements.
• To get order-level settlement details.

'Statements': Fields to understand
1. Settlement Ref. No.
Under ‘Settlement Ref. No.’, you will get the unique transaction reference (UTR)
number against which money has been transferred by Flipkart to your bank account.
2. Settlement Date
Under ‘Settlement Date’, you will get the date when money was transferred by Flipkart
to your bank account.
3. Settlement Value
Settlement value is the amount transferred by Flipkart to your bank account for your
dispatched orders.

‘Statements’: Select date range
• Date Range
The default screen gives you settlement details of the past 1 month. You can
customise the ‘Date Range’ filter to get statements pertaining to any 30-day period.
• Settlement Ref. No.
Enter the ‘Settlement Ref. No.’ to know how much money was transferred to your
account by Flipkart against it and on which day.

• Select date range by clicking inside the input field.
• Download the statement -- either as a PDF or CSV file -- by using the download
button on top-right of the ‘Payments’ dashboard.
• Compare the downloaded statement with your bank records to rule out any
discrepancies.
Reconcile your ‘Statements’

Downloaded ‘Statements’ report
Match the money transfer details in the report with your bank statement

1. Click ‘Settlement Ref. No.’
2. View order and fee details
on your dashboard by
clicking the row containing
the specific Order
ID/Order Item ID
Order item details on your dashboard

1. Select Settlement Date range.
2. Click ‘Settlement Ref. No.’ to get a break-down of the settlement value.
3. Click ‘Download’ and get a CSV of the settlement report for order-level
reconciliations.
Reconcile your settlement value

Downloaded settlement report
You will get details of order-level transactions made during the selected date range

• Order ID: It is the unique identifier of an order placed by a buyer at one go from
one seller.
• Order Item ID: It is the unique identifier of every item in an order.
• Order Date: It is the date on which an order is placed.
• Order Status: This gives us the status of a dispatched order.
• Order Item Value (Rs): This is the total price of an order item.
• Settlement Value (Rs): This is the amount Flipkart transfers to your bank account
at the end of your payment cycle.
• Settlement Date: It is the date on which Flipkart transfers ‘Settlement Value’ to
your bank account.
• Refund: It is the Order Item Value that is refunded to the buyer in case of a return
or cancellation.
• Hold: It is the amount kept on hold in case of a dispute.
• Protection Fund: It is the amount Flipkart transfers to your account in case of loss
during transit or if a return ticket is unjustifiably closed in favour of the buyer.
• Seller Invoice Date: It is the date on which you create a buyer invoice for an order
item.
Fields in your settlement report

• Buyer Invoice: It is the number mentioned on a buyer’s invoice.
• Seller Invoice Amount: It is the total amount you charge a buyer for an
order item.
• Subcategory: It is the subcategory to which an order item belongs.
• Quantity: It refers to the quantity of an order item ordered by a buyer.
• Total Weight: It is the total weight of an order item.
• Total Marketplace Fee: Commission* + Fixed Fee* + Shipping Fee + Reverse
Shipping Fee + Cancellation Fee - Fee Discount
(Commission*: It depends on order category and value; Fixed Fee*: Rs 10;)
• Shipping Zone: It is in reference to a buyer’s location (local, zonal, and national).
• Shipping Fee: It is the fee you are charged, based on the shipping zone, for an
order’s delivery.
• Shipping Fee per 500g: It is the fee you are charged per 500g of an order.
• Reverse Shipping Fee: It is the fee you are charged, based on the shipping zone,
for bringing back an order returned by the buyer.

• Reverse Shipping Fee per 500g: It the fee you are charged per 500g of an order
for returning it to you.
• Cancellation Fee: It is the fee you are charged for cancelling an order. The
charges depend on the stage at which the order has been cancelled.
• Fee Discount: It is a discount that we give you on Marketplace Fee.
• Service Tax: You have to pay service tax on the Marketplace Fee at the
applicable rate.
• Dispatch Date: It is the date on which an order is picked up from you for delivery.
• Delivery Date: It is the date on which an order is delivered to the buyer.
• Cancellation Date: It is the date on which an order is cancelled.
• Dispute Date: It is the date on which a buyer raises a dispute if unhappy with a
return ticket’s resolution.
• Seller SKU ID: It the unique identifier of your product listed on Flipkart.com.
• Settlement Ref. No: It is the unique reference number of a settlement.

• To get consolidated transaction details.
• To get details of unsettled transactions.
Use of ‘Transactions’ dashboard

● Click ‘Invoices’ on your ‘Payments’ dashboard
● Get invoices for any particular period by clicking inside the input field of
‘Invoice Time Period’
● An invoice period is of one month.
● Invoices will be available on the dashboard by 2nd
week of the next month
● One invoice each is generated for prepaid and COD settlements.
Get ‘Invoices’

Write to Seller Support at ss@flipkart.com or call on 080-67981111 (9am to 9pm)
to clarify your doubts. Please mention your email address/display name in all your
communications.
Reach out with your problems
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Flipkart Marketplace – Settlements

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