Avoid These Seven eCommerce Mistakes & Let Your Business Thrive!

Avoid These Seven eCommerce Mistakes & Let Your Business Thrive!

We all are human, and humans tend to make mistakes. But when you are planning to get aboard in the eCommerce industry, you can’t afford to make continuous mistakes. A study says that approximately 75% of new online businesses fail because they fail to avoid these mistakes. Since the eCommerce industry is a cost-effective business, you may underestimate the risks and mistakes in the beginning. However, starting an eCommerce business, you have to focus more on survival than on the other aspects of this business.

Some of you may make mistakes unknowingly in the initial stage of your business, and it can affect the growth of your online business later. As a seller, you have to make sure that you are capable of providing top-notch services to your customers. Customers have thousands of options available, and somehow, if you miss a chance to fulfill their orders efficiently, they may simply switch to your competitors. To tackle this situation soundly, you must know the eCommerce mistakes that you need to avoid in terms of managing your business effectively and efficiently. In this blog, we have mentioned seven eCommerce mistakes you must avoid.

Seven eCommerce Mistakes That You Must Avoid

No Market Research Before Starting

If you are about to start any business, it is essential to do some research before your start. Specifically, it is necessary to research the latest market trends in the eCommerce industry. It is one of the sellers’ most common mistakes before starting their eCommerce business. Suppose customers are more likely to buy products from the latest trends and you’re launching a new but outdated product on marketplaces; who will buy them? Undoubtedly, no one, and if some may, but then also it can’t provide you the expected ROI. Market research does not only refer to research only about the latest trends, but you also need to rotate your eyes on the other aspects as well, such as what your competitors are selling and what customers prefer more to buy from an eCommerce platform.

Selecting a Wrong eCommerce Platform

You must choose the right platform to start your online business as an eCommerce seller. It is essential because it is the base of the eCommerce business. Suppose you fail to choose the right platform. In that case, you may lose the heavy opportunity to make your business successful in generating revenue and making an enormous customer base. As a startup, you must choose platforms with a solid customer base and credibility in the market, such as Amazon, Flipkart, Myntra, etc.

These prominent platforms have the potential to accelerate the growth of your online business and make it stand out from the competition. As a new seller, you must know the nature of whichever platform you choose to sell your products. Look closely at what categories they are offering and what charges they will deduct from your every order.

No or Less Promotion of Product

If you are new to the marketplaces and customers are not aware of your products, then it is crucial to run promotions related to your products. It is evident if customers won’t get to know about your product, how they will buy it. So in this scenario, you need to make several promotional strategies to make your customers aware of your product. It can be one of the sellers’ huge mistakes in not promoting their products at all. In lack of promotional activities, your business may fail, and you won’t be able to re-establish your online presence.

Why take such a risk when you still have the chance to make it a successful affair for you. Several platforms offer promotional features to their sellers, and you just need to invest a little amount and go with the flow. Promotions can effectively attract customers and let it survive at multiple eCommerce sites. Believe it or not but promotions are the crucial step in establishing an online business or launching a new product.

Lack of Inventory Management

As an eCommerce, you may start selling a small number of products, but as soon as your business starts expanding, you have to manage your inventories first. Inventory management is imperative for any eCommerce business, especially if you want to become a multichannel seller and sell your products on various platforms. Due to the poor inventory management, you can not only miss out on a solid customer base but may also lose on a heavy revenue generation factor.

So it is better to get along with any powerful inventory management software such as eVanik. Such software can provide you with real-time inventory reports. Getting along with software can also save you from overstocking. Apart from that, it effectively helps with reconciling the other inventory-related issues.

Complicated Checkout Process

In the eCommerce world, acquiring the buy box section is essential. To reach this section, you need to ensure that your customers can quickly checkout and buy your products. If the checkout process is complicated and not preferable for the customers, they might not buy your products or simply abandon the cart. To escape this situation, you need to check if the eCommerce platform is offering prominent payment modes or not. There should be the option of credit, debit, Upi, and cash on delivery feature on the platform. Apart from that, if there is any buy now pay later option, you must acquire that also because it can attract customers and make them buy your product even if they don’t need it.

Ignoring Customers’ Feedback

Various sellers on major eCommerce platforms don’t know the necessity of replying to customer feedback or making product changes according to customers’ preferences. This is the reason why they aren’t able to make enough sales. Thus it is one of the biggest eCommerce mistakes that most sellers make today. If you are in the process of selling your products on multichannel or have already started your journey, you should give importance to the feedback of customers.

Understand that you are in this business for customers, and your business may survive because of the customers. So there is no denying the fact that you must focus on what your customers are saying. Must reply to their reviews, in this way you make them feel special and they may become your loyal customers.

Clumsy Product Listing Quality

Apart from all other mistakes of the eCommerce business, meager product listing quality is the specific one, and it can ruin your entire hard work if not done correctly. Most sellers do not focus much while listing their products on any eCommerce channel. They don’t see whether the description is suitable, the title is accurate, and whether the product quality is good or not.

Be aware if you are also doing the same because it can negatively affect your entire business. Think from a customer perspective, will you buy such products that have a poor appearance? It might not make sure that you are adding good quality images, embellished descriptions, and attractive product titles along with the relevant title.

Conclusion

Making eCommerce mistakes is inescapable, and you may struggle to get back on track and make your robust online presence as a prominent seller. However, if you are in the learning process, you must consider the above points and try to resolve them as soon as possible. You can not afford to indulge in such mistakes if you envision expanding your online business and making it successful at any cost.

While associating with the eCommerce business, you need to put your customers first and provide them with a pleasant buying experience. Try to know the customer’s shopping behavior and fix all the hurdles coming in the way of order fulfillment. In this regard, you can subscribe to any automatic order management software such as eVanik OWS to eliminate several issues and speed up this process.

How to Attain Your First eCommerce Sale Without Marketing!

How to Attain Your First eCommerce Sale Without Marketing!

Undoubtedly, the eCommerce industry is snowballing, and this enormous industry has been at its boom ever since the pandemic happened. Customers get used to online shopping and order products on a regular basis. It has been predicted that the eCommerce industry will increase its sales by more than 4.9 trillion dollars by 2024. Market experts have estimated that more than 24 million new eCommerce websites will be there by the end of 2024. This is the reason why sellers are moving their stores to online marketplaces.

However, this scenario will also increase the competition between the sellers. But with the right business strategy and tactics, you will be able to survive in this industry and may generate your first eCommerce sales without marketing. A good business plan and enormous ideas can do wonders for your eCommerce business. As an online seller, your focus should be on converting new customers into regular ones and always presenting something new and unique to them. Apart from that, your backend operations should always be top-notch. In this regard, you can take advantage of any online order management software such as eVanik OWS.

Follow These Essential Steps to Generate Your First Sale

Online shopping has become an integral part of customers’ lives. Specifically, after the pandemic, this platform has grown tremendously. Customers prefer to shop from an online store these days and want to get their products delivered to their doorstep. However, this scenario allows new sellers to start their online businesses and make their first sales. But before making any move, do follow these steps to generate your first sale without marketing.

Select a Unique Product to Sell

Firstly, choosing the right product to sell online is vital in terms of generating your first eCommerce sale. Today almost everything customers need is present on eCommerce marketplaces. The product you select to sell online is the most crucial factor that can help in generating your first sale. Your product must be a considerable item that can convince the customer to buy the product. It would be best to think wisely and on a bigger scale from a future perspective. Remember, once you decide what you want to sell, you need to focus on how to sell them without facing the situation of Oos. To avoid such situations, you can use inventory management software like eVanik OWS. It can help you in compellingly managing your inventory.

Get Aboard with the Right Platform

Selecting the right platform is the primary base of every eCommerce business. Once you choose the right product to sell, you will have to select the right platform. Most newcomers start generating their first sales through prominent websites such as Amazon, Flipkart, Myntra, etc. Always select a platform with a solid customer base, fastest order fulfillment process, convenient payment gateways, and easily integrate with your ERP system. These are some of the vital factors that can help your business grow immensely. In the initial period of your business and in the process of generating your first sale, you can take advantage of Amazon FBA. It can take care of the entire order fulfillment process.

Evaluate Every Move of Your Competitor

To attain your first eCommerce sale, it is essential to analyze every move of your competitors. It can help you to know how well they handle their online business and how many customers are involved. It can also help you to evaluate the market trends and demands of the customers closely. You need to understand that you are not the only one going online and selling your products; thousands of sellers are selling similar products as you are. That is why it will be best if you continually keep an eye on your competitors and analyze their every move. You need to find out the weak and strong points of your competitors and plan your strategy accordingly. It can lead you to a better eCommerce business plan and can further help you generate your first sale.

Promote Your Products on Social Media

It is not a deniable fact that social media is one of the best ways to create a buzz about your online business. To sell your products and generate your first sale, it is necessary to let potential customers know about your product. To promote your products, you can take advantage of various social media platforms such as Facebook, Instagram, Twitter, Pinterest, etc., to promote your products. Create your social media page and share it on every platform in a different mode. You can create your own campaign and showcase it on social media platforms to attain customers’ attention. Promoting your products on such a platform can help you fetch more customers on your product page and automatically increase the chances of sales.

Adequate Inventory Management

While being in the eCommerce industry, it is necessary to manage your inventory robustly. It is specifically essential when you want to sell your products on multiple platforms. You need to keep track of every product you are selling online. Believe it or not, but demand and supply is the most crucial factor of every eCommerce business; you can not fulfill any order if you do not have clarity on your inventory. In the initial period of your business, when you are struggling to generate your first sale, you have to monitor your stocks closely. Make sure that the products listed on eCommerce platforms are available to get delivered to your customers. In terms of managing your inventory accurately, you can take the help of any available inventory management software in the market, such as eVanik OWS. It can automatically adjust your inventory and never let you face the Oos situation.

Conclusion

So what are you waiting for? To generate your first eCommerce sale, you can follow the steps mentioned above. Today, eCommerce platforms provide you with the immense opportunity to sell anything online. So, you just need to take the chase and adequately plan your selling strategies to attain your first sale. Later on, you can also quickly expand your business according to your revenue. In this fast-paced world, moving to the online market is an excellent idea in terms of generating revenue and establishing a robust customer base. You can sell your products 24×7 without any eCommerce platform restrictions compared to any physical store.
Along with generating your first sale, you should also take care of your backend operations. For backend support, you can get along with eVanik OWS. It can easily integrate with various eCommerce platforms and provides shipping, payment, inventory, and return reconciliation facilities.

Major Requirement of Automated Return Reconciliation for Online Sellers?

Why is Automated Return Reconciliation a Major Requirement for Online Sellers?

In the eCommerce industry, along with the various benefits, sellers mostly have to face the issues related to returns as well. It is one of the major pain areas for online sellers as it is threatening their overall conversion rate. In the current scenario, almost every seller on multiple marketplaces faces the return issue of their products. At this point, as an online seller, you can feel the need for an automated return reconciliation system.

In this manner, implementing automated reconciliation software can help you efficiently. If we talk about the stats, the returns rate has increased up to 35% in the past few years. In the year 2021, customers have returned products worth 445 billion dollars worldwide. It is bizarre, and you as a seller must be able to handle these issues.

To minimize the return rate, you can take advantage of eCommerce reconciliation software such as eVanik OWS. Their return module is highly efficient to centrally managing Courier Returns and Customer Returns effectively, ensuring smooth and quick turnaround time.

In this blog, we have covered why an automated return reconciliation is required for online sellers. Along with this, you will also get to know other aspects of this essential eCommerce component.

An Elaboration of Returns Reconciliation

Return reconciliation is a significant eCommerce process through which a seller confirms that they have received the returned orders from customers either through courier returns or customer returns. Now the thing is, if you are an average seller and want to avoid miscalculations in this process, you should adopt an automated return reconciliation software. If your monthly eCommerce order quantity is more than a thousand, then miscalculations are more likely to increase.

As an eCommerce seller, you must be able to track down the exact number of all the returned products you have received from eCommerce platforms and those on their way to the warehouse. You can not do this manually as the number is high. By any chance, if you are doing this, it involves sure chances of miscalculations. On the other hand, automated return reconciliation software can help you provide you with all the essential information regarding this. You can easily trace all the returned orders and certify if deductions applied by marketplaces are reasonable or not.

Types of eCommerce Returns

In the eCommerce business, there are three significant types of returns that you must know about being a seller.

Courier Return: When the orders get returned by your courier partner due to the customer’s unavailability is called courier return. It can happen if the customer is not available to receive the order, if the courier partner finds the door locked and if he cannot contact the customer. In this scenario, the order can get returned to the primary source.

Customer Return: When a product fails to satisfy the customers in terms of quality, color, size, style, and design, they simply initiate a return. Return rates are high in selling online clothes, and customers can usually return the product if it doesn’t conquer the level of their expectations.

Canceled Order Return: It mostly happens when a customer cancels a placed order. If they cancel it immediately after placing the order, it can be a relief for you, but if they cancel the order after shipping, it can be a huge pain for you.

What are the Benefits of an Automated Return Reconciliation Software?

Enhance the Customer Relationship

Automated reconciliation provides a deep insight into the entire order fulfillment process. You can get to know the main reason behind the return if it is related to the product’s quality or the marketplace’s service. It can help you rectify all these issues effectively and provide you with an immense chance to resolve the issues related to every return. Once you can rectify the issue and compensate your customers, it can help you develop a good relationship with your customers.

Clarity on Reverse Logistics

Reverse logistics are conducted after a product’s sale to recapture the value and end the product’s entire life cycle. Typically, it involves returning a product to the manufacturer or distributors. Return reconciliation keeps an entire record of the order lifecycle from dispatch to return. Now, if you do this process manually, there is the possibility that you won’t be able to rectify whether the return is because of the manufacturer’s fault or your fault. However, automated software provides you the advantage of saving you from paying the extra money on those products that are unsuitable for resale.

Helps to Relocate your Products

Have you ever thought about what you will do if you don’t receive a returned order? Well, you will get no profit, and it can impact your conversion rate drastically. There is the possibility of an accidental or prudent case of product damage and theft. Without an automated return reconciliation system, you won’t be able to locate your items. Receiving your product’s entire lifecycle can make it easier to relocate a returned product.

Hence, you can get along with return reconciliation software such as eVanik OWS to automate this process. It can help you analyze all types of returns by automating the entire return process. It can also minimize the time taken to process online returns and provide your returns reports as well.

Conclusion

If you are not new to this industry, you may face several challenges in the process of return and must be aware that it is not at all good for your eCommerce business. If you want to upgrade your conversion rate, you must get automated return reconciliation software such as eVanik OWS to minimize returns-related issues. Apart from that, you must implement several ways to help you diminish the return rate.

It will be best if you focus more on product quality and presentation. As a seller, it should be your responsibility never to disappoint your customers at any cost. If your manufacturers are making mistakes, you must be aware and stop buying products from them. Always try to buy products from a reliable manufacturer only.

Time is the money, so as much as time you will save in delivering a product without any mistakes as much as revenue you can generate. If returns are your daily issue, then it is undoubtedly a matter of worry because, in such a way, you won’t be able to expand your business. So it will be best if you get along with automated software and try to delight your customers by meeting their requirements and expectations on time.

Financial Management Tips for eCommerce Business!

Financial Management Tips for eCommerce Business!

The eCommerce industry is absolutely a compelling business that is attracting a lot of new entrepreneurs on a daily basis. This evolving industry has provided immense opportunities to make people self-reliant. But managing your online business is not as easy as you think. If you are the one who is looking for an eCommerce startup, one of the essential aspects of managing your online business is to have a robust financial management system. Establishing your online store requires several strategies and a focus on accurately setting up every aspect of your business.

Along with considering inventory and shipping as crucial aspects, you must know how to handle your finances. After all, you will sell products on any eCommerce platform to generate revenue. To make a smooth flow of revenue generation, you require the best accounting software for your eCommerce business. Dedicated accounting software such as eVanik OWS can help you immensely with managing your finances adequately.

It can become more requisite when you plan to sell your products PAN India. In such a scenario, you have to track the taxes of every state, and it can be time-consuming. In this blog, we have mentioned some financial management tips that will help you as an eCommerce entrepreneur.

  • Register Your Business Legally

The first step you should take before managing your finances is to register yourself as a seller on various eCommerce platforms legally. To become an authorized seller, it is necessary to legalize your business. It is also an essential step because potential customers and manufacturers can check the authenticity of your business. Additionally, most banks in India will not let you open a corporate bank account without accurate business registration documents. Moreover, without proper registration, you won't be able to sell your products on platforms like Amazon, Flipkart, Myntra, etc.

  • Open a Business Bank Account

Once you have established your business, the next step you should take in managing your finances is to open a dedicated business account. You should get one before you start earning income or spending money on other business-related aspects. So it is essential to segregate all your business flows from your personal finances.

It can become much easier for you to accurately handle your finances and taxes. It is also a legal requirement to have a separate business account. However, an individual seller may not legally require a business account. It is still advisable to get one as it can put you on the right path to managing your transactions properly. It is imperative during the tax filing season.

Establish a Secure Payment System

In the process of establishing your online business, it is crucial to set up a secure payment system. It is essential to ensure a great shopping experience for your customers. Before stepping into the eCommerce business, you must set up a streamlined payment process. It can help you in diminishing the cart abandonment rate as well. According to research, most customers abandon the cart after analyzing the insecure payment method.

You need to ensure the customers that their personal details are secure with you. You must consider offering various payment options to your customers, such as credit card, debit card, UPI, cash on delivery, etc. Payment gateways such as CCAvenue, PayUBiz India, and Razorpay keep the payment processing secure.

  • Initiate Efficient Bookkeeping

    It doesn't matter how efficient and fast you are at doing the calculations manually for your eCommerce business. At last, we all are human and prone to making mistakes. To minimize the errors in keeping records of all your financial transactions, payment receipts, and other transactions, you need to maintain efficiency in bookkeeping. Efficient bookkeeping can help save you enough time when it comes to accounting. To execute this process effectively, you must consider integrated payment processing.

To maintain efficiency in bookkeeping, you can take the help of the best accounting software for eCommerce, such as eVanik OWS. It can help you screen several errors from the informational categories to maintain overall efficiency. To manage your finances in a proper manner, you need to maintain the cash flow and provide accurate bills to your customer.

Software like eVanik also helps to automate the invoicing as well. You can also send follow-up reminders, create recurring invoices, and accept digital payments directly from the invoices. It provides transparency that can let you make other decisions related to finances at any time and keeps you 100% GST compliant as with accurate records, filing GST on time becomes a cakewalk. In this way, you will have no requirement for consulting multiple accountants. It can even help you understand your customers' spending habits.

  • Integration with Various eCommerce Platforms

To grow as an eCommerce entrepreneur, you need to sell your products on various eCommerce platforms. It means your financial task will increase, and managing the finances of various marketplaces will not be easy to handle. At this point, you require software for eCommerce that can integrate easily with various platforms and manage your back-office operations.

Manual entry of transactions and other expenses can include significant errors that can be time-consuming as well. On the other hand, accounting software can smoothly integrate multiple channels and provide systematic financial pieces of information. If you enter the eCommerce industry as a seller, you must consider the importance of such software to manage your finances without any hustle.

Conclusion

So these are several tips that you must adopt as an eCommerce entrepreneur. To manage your business's financial flow, you must attain one robust accounting software. It can provide you quick overview of your income and other financial expenses. Eventually, it helps you with financial planning and fixes a budget for your eCommerce business. Accounting software facilitates you to analyze all your monetary data. In such a way, you will be able to streamline every aspect of eCommerce incredibly, such as inventory management and applying pricing strategies.

All these aspects can help you to stay competitive in the market. So, if you are willing to get along with accounting software to minimize the everyday stress, you must consider eVanik OWS. It can not only help you in managing the finances but also with the inventory, shipping, and returns. Apart from that, it has the remarkable features of tally prime integration, which you can use to file your GST smoothly. It also has the feature of Zoho book integration, Aligns books integration, and Quick books integration.

Top Practices of Seller Management to Outshine in eCommerce Business!

Best Practices of Seller Management to Outshine in eCommerce Business!

The acknowledgment of eCommerce marketplaces such as Amazon, Flipkart, Myntra, eBay, Ajio, Meesho, Shopify, etc. has continued to flourish with every passing year. The popularity of online marketplaces has accelerated after the COVID-19 pandemic. Customers prefer online shopping instead of stepping out of their house to a physical store. It is safe as well as convenient for customers from many aspects. While marketplaces provide the infrastructure for sellers to start their online business, sellers still require robust management and refinement to upgrade pricing, inventories, products, and fulfillment process.

Moreover, most successful sellers operate on multiple eCommerce platforms, selling products across states, which adds layers of complexities around taxes. Nowadays, customers want an effortless shopping experience. However, there is software for online sellers, such as eVanik OWS, that helps deliver a positive shopping experience to your customers by streamlining the back-office operations. In this blog, we have mentioned best practices for eCommerce marketplaces that sellers need to attain and implement successfully. Let’s find out why those practices are essential for an online seller. Apart from that, you will learn why seller management should be considered an essential factor in the eCommerce business.

Major Issues Faced by Sellers

Before jumping into the solutions or practices that can help sellers manage their online business accurately and efficiently, it is essential to know about the frequent issues faced by sellers.

Meager Product Catalogue Management

Numerous eCommerce sellers used to be physical store owners or wholesalers. Those who fall in this category don’t have prior experience in selling their products online. It is the fear of losing their business to eCommerce platforms that are driving them towards online selling. Since they don’t have any experience operating online businesses, they lack in creating and managing product catalogs. It can put them into a difficult position. They usually fail to list their products accurately on multiple platforms. The missing attribute of catalog management affects their rankings and increases the return rates, as customers fail to attain essential information about their products.

Frequent Interference of Brands

In the competition of selling more and more products daily, some desperate sellers are misleading eCommerce platforms to upsurge their rankings by listing fake details on products or using other attributes. In such a scenario, it has become challenging for genuine sellers to survive, as brands also question their loyalty. All these severe problems are affecting sellers extensively, and eCommerce marketplaces need to be vigilant and offer compelling solutions to sellers. However, some channels are already providing such solutions to them. If you are facing such issues, you need to move your business to platforms that help sellers resolve such problems.

Complicated Onboarding Process

Several eCommerce platforms have a complicated onboarding process, which can be the one major reason sellers have a tough time attaining success on an eCommerce platform. This issue can be resolved only when marketplaces take the initiative by making the onboarding process hassle-free. By improving the seller onboarding process, eCommerce ventures can make their sellers more comfortable.

Why Seller Management is Essential for eCommerce Sellers

To sell products on various eCommerce platforms, sellers must manage their business adequately. To provide an outstanding shopping experience to your customers, you need to manage inventories, payments, shipping, and returns in a compelling way. Without managing these aspects of your online business, you won’t be able to run your eCommerce business successfully. Poor seller management can disappoint your customers on various levels and ultimately push you towards a failed business. In this regard, you can take the advantage of any best eCommerce management software such as eVanik OWS. It can also help you manage inventory, payments, shipping, and returns by providing you with essential real-time data.

Best Seller Management Practices to Follow in 2022

Execute Onboarding Process Accurately

As a seller, if you genuinely want to grow your business and provide an efficient customer shopping experience, you must attain enough knowledge about onboarding on a specific eComm channel. To make it a hassle-free process, you need to gather all the essential information from the marketplaces and execute it accordingly. Before onboarding on any eComm platform, you must understand their selling process and sellers’ margins. Apart from that, you also need to know their guidelines for sellers. Onboarding on as many channels can upsurge your chances of making a solid customer base and helps you in generating revenue. Educate yourself enough to know all the tactics of eCommerce platforms.

Educate Yourself to Manage the Returns

Education never goes in vain, and it is essential for every aspect of life. It can become more critical when you are out there to earn your bread and butter. If you are an eCommerce seller, then you need to know each and everything about this business or get experts in your team to handle this. Order returns are one major pain area for eCommerce sellers and platforms. According to research, more than 60% of eCommerce returns are due to the mistakes of sellers and retailers. As soon as you get educated regarding the returns, the chances of returns will diminish automatically. In such a manner, you can also come along with some return reconciliation software like eVanik OWS. It can help you in managing your returns effectively.

Try Hard to Win the Buy Box Button

While operating an online business, your focus should be on winning the buy box button on various marketplaces. However, reaching the buy box button is not that easy when there is vast competition. To win the buy box, you have to follow several guidelines of marketplaces where you are selling your products. These guidelines include accurate listing, adequate shipping, frequent customer communication, and a tremendous shopping experience. All these essential factors can help you to win the buy box section. You can also take the help of the best eCommerce management software such as eVanik being used by many sellers already to automate the back-office operations. It can help you immensely in reaching the buy box button.

Conclusion

Thus these are some of the best practices you can make to sell your products hassle-free on various eCommerce platforms. Apart from these practices, as mentioned earlier, you should also include inventory management in this list. Managing inventories can also enhance your seller management. It can help you to serve your customers better and never disappoint them or let them face the situation of Oos (Out-of-stock). For outstanding inventory management, you can take the help of several inventory management software such as eVanik OWS.

Understanding Marketplace Reconciliation for Online Sellers

Understanding Marketplace Reconciliation for Online Sellers

Understanding Marketplace

we at eVanik felt the need for complete guide on marketplace reconciliation for all E-commerce sellers. This article will make you understand all the stages where there is revenue leakage and what parameters you should keep in consideration for marketplace reconciliation

Let’s start with the general definition of “Reconciliation” or “Account Reconciliation”.

Account Reconciliation is the process of comparing internal financial records against monthly statements from external sources—such as a bank, credit card company, or a supplier/vendor/customer other financial institution—to make sure they tally with each other. 

In our discussion, the external source is an e-commerce marketplace such as AmazonFlipkartSnapdealPayTM etc.

In every business, reconciliation of accounts is essential to maintain the financial health of the company, detect frauds, errors and discrepancies and ensure long term sustenance and profitability of the company. Using a software like eVanik OneWorld Suite to reconcile your marketplace business does most of the work for you and saves over 99% of time for you, but there is still that bit of human intuition and intelligence required to make the reconciliation process fool-proof.

Many e-commerce sellers are unable to complete the marketplace reconciliation process in a timely and accurate manner, which introduces risks, leakages and losses and eventually winding up of business. Sellers that adopt a more automated and continuous reconciliation approach benefit from a more controlled and preventive environment and reduced risk of misstatement.

To understand the marketplace reconciliation process in detail, we will first list down the basic steps involved in the reconciliation in a traditional business environment.

Understanding Marketplace 2

Now let’s expand the above by understanding the transactional complexities involved in marketplace business. Let us quick understand  the business process flow vs the reconciliation process / challenge involved.

Business ProcessParametersReconciliation Challenges
Buyer Order StatusMultiple stages like pending, approved, packed, ready, shipped, delivered, returnedDynamic statuses get updated regularly thereby making it impossible to track on downloaded spreadsheets
Marketplace Payment CycleOrders get cumulated for a time period and get collectively paidAggregated payment cycle involve deductions and reserve amount held up to cover future possible returns from customers
Commissions & Marketplace FeeMarketplaces deduct commission charges on all ordersCommissions vary basis category, event based seasonality, tier/level of seller, fulfilment model etc. Actual vs Applicable charges
ShippingShipping charges levied by marketplaces for delivering ordersShipping charges calculated basis weight type (dead weight vs volumetric), distance (Local, Zonal, National) and charged twice in case of customer returns
ReturnsOrders returned either by buyers or by shipping providers and ReplacementsReturn Status (Received or Not), Damaged or Sellable, courier or customer return
ClaimsMarketplaces reimburse some amount to sellers against loss or damage caused due to customer / courier or at the Marketplace WarehouseCheck claim eligibility, claimed on time (Claim Window), right amount claimed, claim reimbursement status, right amount reimbursed
CancellationsOrders can get cancelled by Buyer, Marketplace or Seller at any stage of the orderOrders which are not cancelled by the seller may attract a penalty which may need to be claimed back
Other ChargesMarketplaces levy other charges like Fixed Fee, Closing Fee, Packing Fee, Storage Fee and many more.Multiple heads of charges against every order level for thousands of orders across multiple marketplace channels, products and categories is virtually impossible to keep track of.
Payment SettlementMarketplaces pay after keeping themselves covered and deducting the applicable charges and holding a reserve amount.Bulk settlement invites reconciling every single order under various cost heads. Manually doing this will involve huge manpower bandwidth and costs and a very long time.
Inventory ReconciliationFulfilment models like FBA involve storing sellers inventory at the warehouses owned and operated directly by marketplaces.With no physical ownership and visibility of inventory at FBA type warehouses also involving fast and continuous movement of stocks, it is impossible to keep track of inventory count on a real-time basis. Some marketplaces move the stocks between multiple warehouses and provide a stock statement only once at the end of the month. Inventory also gets damaged, stranded or lost at these warehouses.
OthersOther challenges including non-order related costs like advertising fee, storage fee etcNon-order related fees are deducted from the eligible settlement value and a statement is provided at the end of the month.
AccountingSales, Returns, Commissions, Payments, Reserves, TCSAutomating accounting entries into the accounting software used by sellers, ensuring that the same is always matched with the reports provided by the marketplaces and being compliant on GST and other Government requirements.

E-commerce sellers business owners typically spend their maximum time trying to be on top of their reconciliations with marketplace channels. 

However, the results are mostly ambiguous and outdated because of the dynamic nature of e-commerce business. Complexities widen when sellers are doing business with multiple marketplaces and have expanded their operations to various branches across multiple locations.

Manual and spreadsheet reconciliations are good in a situation when orders are limited and sellers are operating in a single marketplace and a single location. When the multiplier effect steps in, manual efforts will not just increase costs and inefficiencies, it will also lead to frustration and loss of sale.

Marketplaces also impose penalties based on their policies and subsequent algorithms configured thereof. Some wrong penalties may get unnoticed and the seller could incur unwanted losses on the same.

Keeping the above in mind, it is absolutely essential that one should have a good payment reconciliation software which has established credibility, is time tested and approved by marketplaces themselves. All of these ingredients are available with eVanik OneWorld Suite, which is helping sellers reconcile and recover millions of dollars arising from reconciliation gaps and leakages.

Here’s what you can expect from a good marketplace reconciliation software.

  • Transactions related to orders, returns, commissions and payments always updated in your panel 24×7
  • Identify wrong charges
  • Provide alerts on claim window timelines
  • Provide reconciliation reports in the format which can be directly raised as tickets to the marketplaces
  • Keep track of your claims with marketplaces
  • Micro analyze gaps in every cost component like commission, shipping, pick and pack charges, fixed and closing fee, carrier damaged without reimbursement, replaced orders not reimbursed, customer refund claims and lots more
  • The system should incorporate the reconciliation reports in-line with the claim and reimbursement policies of the marketplaces
  • Provide profitability statistics at product level incorporating your purchase costs / COGS and GST / Tax rates giving you the true picture so that you can drill down if there are any gaps.
  • Estimated receivables vs actual received at order and product level.
  • Fully integrated and compliant with all popular accounting software like Tally ERP9, Zoho Books, Alignbooks, FCA Integral, Netsuite, SAP, Navision etc
  • Downloadable reports with summary of reports for CXO / Management view.      If you are looking for a robust, time-tested and proven marketplace reconciliation and integrated accounting solution for your e-commerce business, look no further. eVanik OneWorld Suite has helped over 12,000 e-commerce companies since 2006 to power-up their performance on marketplaces. To request assitance on Reconciliation Click here to read more.