How to Analyze Flipkart Seller Settlement

Flipkart provides detailed settlement reports to sellers, but the multiple deduction categories and complex fee structure can be confusing. Understanding your settlement report is crucial for knowing your actual profit and identifying any discrepancies in payments.

This guide explains every section of a Flipkart settlement report and helps you understand where your money goes.

A Flipkart settlement is a periodic payment made by Flipkart to sellers for orders that have been delivered to customers. Settlements are typically processed on a weekly or bi-weekly basis, and the settlement report details all transactions and deductions for that period.

The settlement amount is not the total selling price of your products. It is the amount remaining after Flipkart deducts all applicable fees, commissions, shipping charges, GST, and other costs.

Commission Fee

Flipkart charges a commission (marketplace fee) on every successful order. The commission percentage varies by product category. For example, electronics may have a lower commission rate while fashion items may have a higher rate.

Shipping Fee

Shipping charges are deducted based on the product weight, dimensions, and delivery distance. Flipkart uses its logistics network (Ekart) for most deliveries, and the shipping cost is calculated accordingly.

Fixed Fee / Collection Fee

A fixed fee per order may be charged by Flipkart for payment processing and order handling. This fee is deducted from each transaction.

GST on Fees

Flipkart charges 18% GST on all its fees and commissions. This means the total deduction is higher than the base fee amount.

Reverse Shipping / Return Charges

When a customer returns a product, Flipkart charges reverse shipping fees. These charges vary based on the product category and are deducted from the settlement.

TDS (Tax Deducted at Source)

Flipkart may deduct TDS as per Indian tax regulations. The TDS amount depends on your PAN details and applicable tax rates.

Key Sections of the Settlement Report

• Order Details: Order ID, product SKU, quantity, selling price
• Commission: Marketplace commission amount deducted
• Shipping Fee: Forward and reverse shipping charges
• Fixed Fee: Per-order handling charges
• GST: GST collected on fees and commissions
• Settlement Amount: Final amount credited to your bank account
• TDS: Tax deducted at source (if applicable)

Settlement Period

Each settlement covers a specific period. The settlement report will show orders delivered during that period and the corresponding payments and deductions. Payments for recently delivered orders may appear in subsequent settlement cycles.

• Missing payments: Orders that appear delivered but have no corresponding settlement
• Incorrect commission: Commission charged at a higher rate than expected
• Excess shipping charges: Shipping fees that seem higher than the actual delivery cost
• Duplicate deductions: The same charge appearing multiple times
• Delayed settlements: Payments that appear in later settlement cycles than expected
• Incorrect TDS: TDS deduction at incorrect rates

Identifying these discrepancies requires comparing your records against the settlement report, which can be tedious for sellers with large order volumes.

Note: The settlement amount already has marketplace fees, commission, shipping, and GST deducted.

• Download settlement reports regularly and keep records for at least 6 months
• Compare your expected settlement with the actual settlement for each period
• Track order-wise payments to identify specific orders with discrepancies
• Monitor your commission rates and verify they match the agreed category rates
• Keep track of return and RTO charges separately to understand their impact

Manually analyzing hundreds of settlement entries is overwhelming. EcomPL automates this process completely.

EcomPL is an offline desktop software that processes your Flipkart order and settlement files. It automatically identifies missing payments, calculates order-wise profit, analyzes SKU-level profitability, and provides clear reports that show your actual earnings after all deductions.