This document discusses setting shipping charges for products sold on an e-commerce platform. It provides examples of how shipping charges can be adjusted and passed through to sellers. The key points covered are: 1) Shipping charges can be partially adjusted and included in the product price to improve checkout experience. 2) Sellers will receive payment for the selling price minus commissions and fees, and separately for shipping charges minus the same deductions. 3) The maximum shipping charge is the greater of 5% of the selling price or 150 times the actual weight of the product in kilograms.

1. Setting shipping charges
In this module, we will discuss:
1. Setting shipping charges
2. Payout calculation
3. Maximum limits of shipping charges
4. Updating shipping charges on the seller panel

2. In some cases shipping charges charged from customers will
be passed on to you directly
• Example: If the product’s price is Rs. 49 and the shipping charge is Rs. 59, you can adjust a part of the shipping charge in your product’s price.
Ideally, the shipping charge should be less than the product’s price. This improves the product checkout from the cart. Let us understand this with the
help of an example:
Note: The total is exclusive of taxes and commissions.
Tip: It is advisable to have all prices/charges ending with 9. Ex: 39 instead of 40; 59 instead of 60.
Product price 49
Shipping charge 59
Total 108
Product price 69
Shipping charge 39
Total 108
Before After
Total receivable amount still remains the
same*

3. You will receive payment in the following breakdown
• Example: If the product price is set at Rs. 69 and the shipping charge is set at Rs. 39 (assuming 100% is passed through), with the logistics charges
being Rs. 50, following will be the breakdown of the payment:
Note: 1% TCS will also be deducted from the base price.
Tip: Make sure you set prices such that you are able to recover the costs incurred.
Selling Price Shipping charge from customer
Selling price 69
Commission @ 5% 3.45
Payment gateway charges @ 2.7% 1.86
GST @ 18% 0.96
Net receivable 62.73
Shipping charge 39
Commission @ 5% 1.95
Payment gateway charges @ 2.7% 1.05
GST @ 18% 0.54
Net receivable 35.46
Logistics charges 50
GST @ 18% 9
Net payable 59
Logistics charge
=Total Payout
Rs. 39.19

4. Shipping charges range between 0 and maximum limits defined by
following cases
• The maximum limit is taken as the greater of the following two cases :
1. 5% of the selling price 2. 150 x actual/ volumetric weight (kg)
• Let us understand this with the help of an example:
Product price 49
(Price/100)x5
(49/100)x5
Maximum shipping charge 2.5
Product weight 2kg
150xweight(kg)
150x2
Maximum shipping charge 300
*In this case, you can enter any amount between INR 0 and INR 300 as the shipping charge.
5% of selling price 150 X actual/volumetric weight (in kg)

5. Updating shipping charges on the seller panel
Click on the Catalogue tab
The Shipping Charge is not transferred to you. It is transferred to you only in special cases where there are changes in the payout on the
basis of your agreement with the category team.
Click on the Edit Icon

6. Updating shipping charges on the seller panel
Click on the calculator icon

7. Updating shipping charges on the seller panel
Enter here the shipping charge
Shipping charge should be per unit

8. Updating shipping charges on the seller panel
Click on the Update button
The shipping charge will be updated. To see the changes, refresh the page.
Note- You can update shipping charges only when your category/account manager asks for it to be updated.

9. Thankseveryone!
For any query, please raise a ticket using the Support tab on your seller panel.