Glossary
Settlement
Also called: payout, marketplace remittance
Definition
The payment a marketplace makes to a seller for a period of orders, after deducting commissions, shipping, fees, promotions, penalties and tax collected at source.
Settlement value is almost never order value. The gap is a stack of separate deductions, each computed by its own rule, and each capable of being applied incorrectly across thousands of orders at once.
Reconciling per order line rather than per payout total is what surfaces systematic errors, such as a whole category charged at the wrong commission slab.
Related terms
- TCS (Tax Collected at Source)Tax that an e-commerce operator collects on the net value of taxable supplies made through its platform and deposits against the seller's GSTIN.
- RTO (Return to Origin)A parcel that was never delivered to the customer and is being sent back to the seller, usually after failed delivery attempts or refusal.
- Order Management System (OMS)Software that brings orders from every sales channel into one place and keeps a single authoritative stock number behind them, through invoicing, fulfilment and payment reconciliation.