payment calculation

How can you calculate the

payout?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?

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 gatewayFee paid for transfer of money via

Paytm Mall payments gateway

Payment gateway (PG)

commission is 2.7% of selling

price

Logistics chargesCharges 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

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.

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

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 >60 Kg Rs 8 Rs 10 Rs 12 Rs 15

Note- All the fee mentioned above is exclusive of taxes.

• 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

Vo

lum

etr

ic

we

igh

tD

ea

d w

eig

ht

Formula Example

In this case dead weight will be considered, since it is greater than the

volumetric weight

Example 1. If the weight of your product is 5 Kg


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?




Surface

Slab Charges Weight

breakup

Calculation Final




Total 20 Kg Rs 366






Surface

Slab Charges Weight

breakup

Calculation Final




Additional 30-60 Kg Rs 10 5 Kg 10*5 50

Total 35 Kg Rs 566


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- This is an illustrative list and doesn’t include all cases.

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.

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.

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%

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.

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 [(1000)-(124.3+27+50+36.23)]

Rs.762.47

Example : Product- Men’s T-shirt

DE

DU

CT

ION

S

Rs 0(-) Additional minor deduction/penalty

(-) GST@ 18% Rs 36.23 [18%*(124.3+27+50)]

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

Click on the calculator

icon

3.

3



Enter the MRP & selling

price

4.

4

5

Click on re-calculate

button5.



View the payout break

up here

6.

6



Thanks everyone!For any query please raise a ticket on support

payment calculation

Business