Sellers are often fed up with the frequently changing payment policies by the eCommerce websites. Websites like Flipkart, Amazon, Snapdeal, etc are the perfect examples for this statement. It’s true that it is not easy to keep track of orders, returns, penalties & cancellations and accommodate fees & taxation (Payment Reconciliation) and make changes in the eleventh hour for calculating payment dues.
Why payment reconciliation is not easy
- In the case of higher volume sale volume, reconciliation becomes a tedious and complicated task.
- Getting a huge list of charges like fee service tax, fulfillment fee, FBA, the logistic fee can change any time
- 2 to 3 months of product returns after collecting from the buyer.
- And several other surprise hiccups
Sellers option on how to do payment reconciliation
After thorough research, we have found three methods that most sellers use to keep track of payments from marketplaces. We came across three methods that seller usually follow –
- Type of sellers who don’t track their payments and have faith in the e-commerce website
- Type of sellers who maintain the records manually
- Type of sellers who use eCommerce software
Let’s understand the payment reconciliation modes one by one –
Relying on Marketplace updates
The sellers who sell on one or two websites sell only a limited number of products. Some marketplace panels are often enough because they can provide details like order details, order return details, pending dues, disbursement reports, etc. They also send regular alerts that will notify.
Amazon is considered to be one of the best market places when it comes to disbursing correct payments.
As the eCommerce trend is growing several companies are introducing eCommerce specific products and services like eVanik. Sellers who use this software get high volumes of orders on a monthly basis and prefer to outsource reconciliation tasks to external software.
This software is capable of handling multiple channel orders, helps to track payments from numerous market places, notify paid or unpaid stats & any unreasonable or extra deductions. eVanik has been developed by a renowned private company with the aim to tackle any issues that a seller will face in the marketplace.
Manually tracking the record
This can be defined as the most traditional approach for anyone who cannot afford a paid software. These sellers prefer to conduct their daily tasks in spreadsheets like Microsoft Excel to maintain any payment reconciliation.
They add formulas and add functions like pivot table & VLOOKUP in the sheet to insert orders and track payments. But spreadsheets have their own problems. Since most orders are dynamic in nature, the seller has to appoint a person who is dedicated to tracking these orders only and there is always the possibility of human error while maintaining any records.
So is there an effective way to reconcile payments?
Absolutely, there is an effective way. The aim should be to minimize the gap in the payment methods. And the only way a seller can spot any discrepancies is through regular tracking and updating every payment that has happened in the business.
Another way of doing this is by taking a subscription of eVanik that will help in dealing in every part of the business and make sure no seller has to face any issue regarding any part in the business.