Understanding basics of payment

PropertyofCluesNetworkPvt.Ltd.-Strictlyprivate&confidentialPropertyofCluesNetworkPvt.Ltd.-Strictlyprivate&confidential
Basics of Payment

Billing Components Definition
Selling fees (SF) Commission charged from merchant on successful order in terms of percentage based on Category
Fulfilment Fees (FF) Shipping fee charged on the basis of defined weight Slab of the product.
Forward Fulfilment (FFF) Fee Charged for Shipping product from Merchant to Customer
Reverse Fulfilment (RFF) Fee Charged for Return pickup from Customer and shipping to Merchant
Product Weight Weight at which product is listed on panel
Shipping Cost Cost of shipping charged to the customer
RMA Returns by Customers after receiving the Order
RTO Returns by Courier where Order has not reached/ accepted by the Customer
RTM Return Received by Merchant
Complete Order Status Order after being delivered, has crossed the duration of eligibility of return by customer, without the
return being initiated
Glossary of Terms

PropertyofCluesNetworkPvt.Ltd.-Strictlyprivate&confidential
Eligible for Billing Status
An Order becomes
Eligible for Billing, when it
reaches a particular Order
Status depending upon
Category of Merchant and
the mode of Payment
TRM Top Rated Sellers on
ShopClues
Above
Average
Sellers
Sellers with more than
Rs. 25000/ week payout
for 3 consecutive weekly
cycles
All Other
Sellers
All Sellers who do not
fall in two above
TRM
Above
Average
Sellers
All
Other
Sellers

ShopClues follows a Wednesday Payment cycle i.e., payment instructions are released
to bank every working Wednesday for orders that become eligible for payment on or
before Monday 5 p.m.
In the Wednesday payment cycle, merchants will get paid for the products that
successfully reach “Eligible for Payment*" status as explained on the previous slide
Payment Cycle

How is Payout calculated?
Payout
Selling Price
Shipping Cost
Fulfilment Service Fee
Selling Service Fee
Order Processing Fee
Packaging Fee
(Selling Price of Product on ShopClues)
(Shipping cost charged to the customer)
(Selling Service fee charged based on the
Category of Product)
(Order Processing Fee charged per item)
(Fulfilment Service fee charged based on the
Volumetric weight of Product for SCVP & SCVB)
(Packaging Service fee charged for SCVP
fulfilment)

Billing
Complete
Shipped -Exceptions
ShopClues Rejects Legacy
RMA Rejected by ShopClues
Cancelled by Customer-
Shipment Delay
• Shipment Delay
• Wrong Delivery Address
• Empty Box
• Shipment Lost
Cancelled by ShopClues
(No Merchant Liability)
Normal
Billing
(No Additional
Charges)
Once the Order gets delivered and reaches the complete status it enters the normal
billing cycle that follows the Payout formula defined in the previous slide.
Besides the complete order status certain other order status as mentioned below
have no merchant liability and therefore no additional charges or penalty is charged
on them.

• ShopClues- OSLA
• Customer – OSLA
• Merchant
• Order Transfer*
• Policy Violation by Seller
Order is Cancelled
Merchant is Liable
• ShopClues- NSS Delivery/ Pickup
• ShopClues – COD not Confirmed
• ShopClues- Fraud Alert
• ShopClues- Excess Sold/ Wrong
Price
Order is Cancelled
Merchant is Not
Liable
Selling Fee is
charged
Cancelled Order Status and Applicable Charges
No Additional
charges
* On order transfer, Seller will
also be charged the difference
in selling price (if any)
When the Order gets cancelled, the liability for cancellation is ascertained and the
order moves into below mentioned statuses of cancellation. Where the seller is held
liable Selling fee is charged and in other cases No charges are levied on the seller

Net Payout When Order is Returned
Return with Pick Up - Product is returned to the seller after pick-up from the customer
Net Payout = Product Value - Selling Fee - Forward Shipping Freight - Return Shipping Freight -
Rs.50 (Handling Charge/QC Charge)
Return without Pick Up - The case arises when a buyer has raised a return request for an order of
value that is economically not viable for pickup
Net Payout = Product Value - Forward Shipping Freight
Shipment Lost By Courier on Return - In case of shipment lost by courier during reverse transit,
under merchant protection policy, merchant are paid full product value after deducting the charges
mentioned below
Net Payout = Product Value - Forward Shipping Freight - Return Shipping Freight - Rs.50 (Handling
Charge/QC Charge)

Summary of Charges Under Customer Returns
Type of Return (RMA) SF FFF RFF HC
Return With Pick-up
(*No SF in non-refund cases)
a* a a Rs. 50
Return Without Pick-up r a r r
Shipment Lost by Courier (Reverse) r a a Rs. 50
SF Selling Fee
FFF Forward Fulfilment Fee
RFF Reverse Fulfilment Fee
HC Handling Charges

RTO Charges
Weight Bucket Flat Subsidised Rate – TRM Flat Subsidised Rate – Non TRM
<= 2 Kg 10 + GST @18% 20 + GST @18%
2 to 6 Kg 25 + GST @18% 50 + GST @18%
6 to 10 Kg 50 + GST @18% 100 + GST @18%
>10 Kg 90 + GST @18% 120 + GST @18%
RTO charges for 1st five RTOs in the lifetime are fully subsidized
Merchants have to bear the cost of forward and reverse shipping for the
items returned due to no claim by the buyer, both in case of Cash on
Delivery and Prepaid.
ShopClues has subsidised RTO Charges where approximate benefit for
TRM is 90% and Non-TRM is 80%. Subsidized rates are given below-

Charges Under Courier Returns
Type of Return (RTO) SF FFF RFF
RTO- Reattempted r a a
RTO Rejected by Merchant r a a
RTO Delivered to Merchant r a a
SF Selling Fee
FFF Forward Fulfilment Fee
RFF Reverse Fulfilment Fee
RTO-RTM Not eligible status, where Merchant is not Liable does not attract any charges.

• RTO Rejected by Merchant
• RMA Rejected by Merchant
• RTM Complete
• RMA Delivered to Merchant
Order is Returned
by Customer and
Merchant is Liable
(2* Fulfilment
Fee)
+
Rs.50 (Handling
Charges)
Additional Charges for Returns (Special Cases)

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