Understanding how payment reconciliation works for marketplace orders sold by you.
For any e-commerce business, it's crucial to track payments received and expenses incurred. The best practice is to cross-check these financial transactions against each order—a process known as payment reconciliation. This involves monitoring expenses and payments for each order to ensure accurate bookkeeping.
In this article, you will learn:
- What issues do sellers face when reconciling marketplace payments?
- How does Eshopbox help reconcile marketplace payments?
- How does marketplace payment reconciliation work?
Issues in reconciling marketplace payments
- Payment received in the bank doesn't match the sales: This discrepancy often occurs because marketplaces deduct their fees before transferring payments to you.
- Multiple fees are charged for an order: Marketplaces impose various charges such as commission, closing, payment collection, and shipping fees. These fees may vary for each order.
- Payments aren't received chronologically: Marketplaces sometimes release payments for older orders long after settling newer ones.
- Tracking refunds is challenging: When a customer returns a product, and it's picked up, they receive a refund. This amount is deducted from your next settlement, even if you haven't received the returned package yet.
- Payment formats vary across marketplaces: Each marketplace provides payment reports in different formats. Converting these into a unified format for reconciliation requires manual effort and increases the risk of errors.
- Exceptional scenarios complicate matters: Exchanges, replacements, cancellations, discounts, and marketplace-funded promotions further complicate the reconciliation process.
How does Eshopbox help reconcile marketplace payments?
You can upload the report received from the marketplaces without making any changes to the file format or data. This saves you considerable time and effort while reducing the risk of errors.
Eshopbox streamlines the payment reconciliation process by automating tasks that match payments with sales and generates comprehensive report summaries and detailed breakdowns in a standardized format across all marketplaces.