Need for Reconciliation for E-commerce Sellers
Reconciliation is a very crucial process to mitigate the financial risks arising due to non-reconciliation of orders, inventory, payments and vendors. Reconciliation has to be integral business process for any marketplace seller or online seller.
- Unpaid Orders
- Under Paid Orders
- Wrong Deductions
- Claims and Disputes
- Wrong shipping weight
- Order Date vs Invoice Date: GST Implications
Payments Controlled by Channel
Still not paid | Payment cycle delays
Lower payments | Incorrect deductions
Shipping Weight | Commission Charges
No Control by Seller
- Product level profitability
- GST and TCS mismatch
- Accounting and Compliance concerns
- Slow down in business growth due to back office tasks
- Multi-Channel dynamic behavior.
- Different strokes for different folks.
Order Controlled by Customer
Order Status from placing to approved (Timelines?)
Inventory turn loss to seller
Longer realization cycle, original order could get
delayed in return or in damaged condition
Shipping Controlled by Courier
Time to Ship | Shipping Charges | COD Collected ?
Unsellable or Damaged | Lost in Transit
Cancellation post pick up
Delayed Shipments | Return Reversals