![How is payout calculated?
Final payout to you is made after the various commissions & fee are deducted from the selling price
Payout
Selling price Rs 1000
(-) Marketplace commission Rs 124.3 (12.43% *1000)
(-) Payment gateway fee @2.7% Rs 27 (2.7%*1000)
(-) Logistic charges Rs 50 (500 grams)
= Payout breakout Rs.754.85 [1000-(124.3+27+50+36.23+7.62)]
Example : Product- Men’s T-shirt
DEDUCTIONS
Rs 0(-) Additional minor deduction/penalty
(-) GST@ 18% Rs 36.23 [18%*(124.3+27+50)]
Rs 7.62 [1%*(1000-(124.3+27+50+36.23))]TCS (1%) on base price](https://image.slidesharecdn.com/20181001paymentspayoutcalculatorcombined-181003191258/85/Payout-calculation-15-320.jpg)
Payout calculation
- 1. How is your payout calculated? In this module we will discuss: 1. How is your payout calculated? 2. How can you check your commission details? 3. What are the different modes of logistics? 4. How can you measure the weight of the packed product? 5. What are the logistic charges at Paytm Mall? 6. What are the different types of fraud? 7. What is a service level agreement (SLA)? 8. How to avoid penalties? 9. How is payout calculated? 10. How can you check your expected payout on the Paytm Mall seller panel?
- 2. How is your payout calculated? • Final payout to you is made after the various commissions & fee are deducted from the selling price • The components which are deducted from the selling price are as follows- Charges Definitions Rates Marketplace commission Fee charged for listing your products on Paytm Mall marketplace Marketplace commission is a percentage of selling price, varies at category/ product level. Payment gateway Fee paid for transfer of money via Paytm Mall payments gateway Payment gateway (PG) commission is 2.7% of selling price Logistics charges Charges for using services of Paytm Mall logistics partners Logistics charges are charged based on modes of shipment. Penalty Fraud is a deliberate action of deceiving Paytm Mall to secure unfair gain which may cause financial, brand image, or other damages to Paytm Mall or its partners. Depends on type of fraud
- 3. How can you check your commission details? You can download your agreement history by going to seller panel in which you can read terms and conditions along with commission details of your products Order Processed Click on Profile Click on agreement history Click on ”click to download” 1 2 3 2. 3. 1. Note- You have to download the latest version of the agreement history.
- 4. What are the different modes of logistics ? Express shipment • Standard sized shipments (less than 5 kg) which are serviced through air mode Local shipment • These are intra city shipments i.e. whose pick up & drop location fall in same city Zonal shipment • All pin codes assigned to specific zones (north, south, east, west), if pick up and delivery fall in same zone (not in cities) zonal rates will be charged Metro shipment • Rates will be applicable for one of the cities Delhi (NCR),Bangalore, Hyderabad, Kolkata, Chennai, Mumbai where delivery happens National shipment • These are inter zone shipments i.e. whose pick up & delivery pin code fall in different zones
- 5. What are the logistics charges at Paytm Mall? Below are the weight slab rates for logistics in Paytm Mall Revised shipping charges Express Weight Local Zonal Metro National First 500 Grams Rs 35 Rs 45 Rs 55 Rs 60 Additional 500 Grams Rs 25 Rs 35 Rs 45 Rs 55 Surface Up to first 3 Kg Rs 90 Rs 100 Rs 110 Rs 120 Additional kg 3-10 Kg Rs 18 Rs 20 Rs 23 Rs 25 Additional kg 10-30 Kg Rs 15 Rs 18 Rs 20 Rs 23 Additional kg 30-60 Kg Rs 10 Rs 12 Rs 15 Rs 20 Additional kg >60 Kg Rs 8 Rs 10 Rs 12 Rs 15 Note- All the fee mentioned above is exclusive of taxes.
- 6. • Weight of a product can be calculated in 2 ways: dead weight and volumetric weight • The higher of the 2 is used to calculate the logistic charges How can you measure the weight of the packed product? Dead weight = weight of package Length 5 inches Width 6 inches Height 4 inches Volumetric weight 393.28 Grams Volumetric weight in grams = (𝑙𝑒𝑛𝑔𝑡ℎ × 𝑏𝑟𝑒𝑎𝑑𝑡ℎ × ℎ𝑒𝑖𝑔ℎ𝑡 × 2.543) 5 Note: length, breadth and height in inches Weight of the packet measured on the weighing machine = 900 grams Dead weight = 900 Grams Weight Volumetric weight Deadweight Formula Example In this case dead weight will be considered, since it is greater than the volumetric weight
- 7. Example 1. If the weight of your product is 5 Kg Revised shipping charges Surface Slab Charges Weight breakup Calculation Final Up to first 3 Kg Rs 90 3 Kg 90 90 Additional kg 3-10 Kg Rs 18 2 Kg 18*2 36 Total 5 Kg Rs 126 How can you calculate logistic charge? Note- All the fee mentioned above is exclusive of taxes.
- 8. Example 2. If the weight of your product is 20 Kg Revised shipping charges Surface Slab Charges Weight breakup Calculation Final Up to first 3 Kg Rs 90 3 Kg 90 90 Additional kg 3-10 Kg Rs 18 7 Kg 18*7 126 Additional kg 10-30 Kg Rs 15 10 Kg 15*10 150 Total 20 Kg Rs 366 How can you calculate logistic charge? Note- All the fee mentioned above is exclusive of taxes.
- 9. How can you calculate logistic charge? Example 3. If the weight of your product is 35 Kg Revised shipping charges Surface Slab Charges Weight breakup Calculation Final Up to first 3 Kg Rs 90 3 Kg 90 90 Additional kg 3-10 Kg Rs 18 7 Kg 18*7 126 Additional kg 10-30 Kg Rs 15 20 Kg 15*20 300 Additional 30-60 Kg Rs 10 5 Kg 10*5 50 Total 35 Kg Rs 566 Note- All the fee mentioned above is exclusive of taxes.
- 10. Types of frauds Descriptions Penalties Empty Box Empty Box- When the parcel contains other stuff like bricks, stones, garbage etc instead of actual product Penalty will be = GMV+Cashback+15000/(Litigation expenses) If total such cases exceed 0.1% of total lifetime orders it will lead to permanent delisting Selling Fake Fake Product- Selling fake branded products, purchased from local trolley without the authorization Penalty will be =GMV+Cashback+15000/(Litigation expenses) Permanent Delisting from Paytm Mall platform MRP mismatch MRP mismatch- Altering the original MRP Penalty will be = GMV+Cashback+15000/(Litigation expenses) and permanent removal of respective product id from Paytm Mall seller panel If there are multiple such occurrence – Permanent Delisting from Paytm Mall platform What are the different types of fraud? Note- 1. This is an illustrative list and doesn’t include all cases. 2. Paytm Mall reserves the right to block your seller account or to disable your listings depending on the severity of the case.
- 11. Types of frauds Descriptions Penalties Self ordering Self ordering- For taking advantage of the offers and promotions which is meant for other genuine customers Penalty will be = 3*GMV+cashback+15000/(Litigation expenses) No response No response- When you don’t process order and order crosses the SLA Penalty will be = SLA breach penalty + Cancellation penalty Seller cancellation Seller cancellation – If you cancel the order Pre SLA seller cancellation = Cancellation penalty Post SLA seller cancellation = SLA breach penalty + cancellation penalty What are the different types of fraud? Note- 1. This is an illustrative list and doesn’t include all cases. 2. SLA breach penalty and cancellation penalty are defined at product’s category level. 3. Paytm Mall reserves the right to block your seller account or to disable your listings depending on the severity of the case.
- 12. What is a service level agreement (SLA)? Stages of orders Timestamp Penalties Order placed on 8th Jan 2018 at 08:00 pm No penalty SLA as agreed 2 days No penalty Order to be moved to “To handover” by On or before 10th Jan 2018, before 10:00 am No penalty Order to be handed over & marked ‘Shipped’ by On or before 10th Jan 2018, before 08:00 pm No penalty Ship deadline (SLA breached) 10th Jan 2018 at 08:00 pm SLA breach penalty Grace period of 1 day 11th Jan 2018 at 08:00 pm SLA breach penalty Extended deadline (Auto cancelled) 11th Jan 2018 at 08:00 pm SLA breach penalty + cancellation penalty Every Seller needs to ensure that all the orders are marked Shipped within SLA, so handover the product 1 day before the SLA date. Here is an example to help you understand this better: A service level agreement (SLA) is your promise to ship your products to your customers within a certain number of days Note- 1. If SLA is breached , the order will be cancelled and you will be charged a SLA breach penalty and a cancellation penalty. 2. SLA breach penalty and cancellation penalty are defined at product’s category level. 3. Avoid SLA breaches as they affect your seller ratings and performance on Paytm Mall.
- 13. Penalty structure There will also be a minimum cancellation penalty amount and minimum SLA breach penalty amount. This means, seller will be charged higher of minimum penalty amount OR Y%/X% of SP. Note- 1.These charges are exclusive of taxes 2. Minimum penalty amount will be Rs.50 on both SLA breaches and Cancellations by Seller SLA breach penalty and cancellation penalty are defined at product’s category level SLA breach penalty, ‘X%’ of selling price Electronics 10% FMCG 15% Others 20% Seller cancellation penalty, ‘Y%’ of selling price Electronics 10% FMCG 15% Others 20%
- 14. How to avoid penalties? Avoid Penalties • Maintain physical stock of products • Add inventory only if you have its physical stock • Procure genuine products only • You must have authorizations from brands for all products • Ship products with an MRP sticker • Always match MRP of product with the MRP listed in your catalogue • Ensure that the warranty you offer on the product is valid • Maintain record of purchase • Do not indulge in fraudulent methods to obtain induced orders.
- 15. How is payout calculated? Final payout to you is made after the various commissions & fee are deducted from the selling price Payout Selling price Rs 1000 (-) Marketplace commission Rs 124.3 (12.43% *1000) (-) Payment gateway fee @2.7% Rs 27 (2.7%*1000) (-) Logistic charges Rs 50 (500 grams) = Payout breakout Rs.754.85 [1000-(124.3+27+50+36.23+7.62)] Example : Product- Men’s T-shirt DEDUCTIONS Rs 0(-) Additional minor deduction/penalty (-) GST@ 18% Rs 36.23 [18%*(124.3+27+50)] Rs 7.62 [1%*(1000-(124.3+27+50+36.23))]TCS (1%) on base price
- 16. How can you check your expected payout on the Paytm Mall seller panel? Click on catalogue tab Click on edit icon 1. 2. Order Processed 1 2 You can check your expected payout amount through the payout calculator
- 17. Click on the calculator icon 3. 3 How can you check your expected payout on the Paytm Mall seller panel?
- 18. Enter the MRP & selling price 4. 4 5 Click on re-calculate button 5. How can you check your expected payout on the Paytm Mall seller panel?
- 19. View the payout break up here 6. 6 How can you check your expected payout on the Paytm Mall seller panel?
- 20. Thanks everyone! For any query please raise a ticket on support