A small fee called a collection fee is charged by Flipkart to sellers, for all prepaid and post-paid orders that a seller receives. The Collection fee will vary depending on the payment type chosen by the customer (Prepaid/Post-paid). In case of a refund or cancelled order, this fee is refunded to the the seller.

For a prepaid order – Based on the Payment gateway, and for a post-paid order – Based on cash collection charges. The collection fee will be calculated on the final selling price of a product.

The final selling price is a sum of the amount paid by the Customer including shipping charges if any (Price of product + Shipping charges). This will remain the same for all sellers irrespective of the category and tier.

Flipkart Rate Card for Collection Fee:

This Fee is Charged by Flipkart based on the item price. This Fee is gets reimbursed by Flipkart in case the order is Refunded by Flipkart to the Customer. If Flipkart is running any promotional offer for sellers, they may not charge this Fee.

This Fee is varied by transaction,
  • For Prepaid Orders, Flipkart charges 2% of the Sale Amount.
  • For Post-paid orders for item prices, less than 750 they charged a flat 15 Rs.
  • For item prices above 750, they charge 2 % of the Sale Amount.

Calculation of collection fee is very tedious, as the collection fee will be different for every order. This is where Cointab’s system becomes very useful as it automatically takes all the data and calculates this fee on every order. The system has its rate card adapted to Flipkart’s rate card which makes this calculation easy.

The Rate Card is as below:

Here, the system analyses the order repost and selects which orders go in which price range and which type (prepaid or post-paid) and then calculates the collection fee accordingly.

For example,

In this Order, the system has calculated the Collection fee based on its rate card. First, it takes the collection fee charged by Flipkart for that order. Then it Calculates the correct collection fee which should have been charged and then it shows the difference between these charges and by how much Flipkart has overcharged a seller on their collection fee.

This individual data is then automatically compiled by the system and gives an output as a whole as shown below.
The system compiles all the individual data and gives this result.
  • Total Collection Fee
    • This is the Amount given by Flipkart as the collection fee.
  • Collection Fee – Correctly Charged
    • When the Collection fee amount calculated by Cointab is equal to the amount charged by Flipkart in their reports. It is then recorded as Correctly Charged.
  • Collection Fee – Overcharged (Sale)
    • The system calculates the difference between the Total collection fee and the correctly calculated total collection for every order. This row shows a total of all the overcharged collection fees in this calculation.
  • Collection Fee – Undercharged (Sale)
    • The system calculates the difference between the Total Collection fee and the correctly calculated collection fee. This row shows a total of all the orders where the collection fee is undercharged.
  • Collection Fee – Overpaid (Refund)
    • When an order is refunded the Collection fee gets reimbursed to the seller. Here the system calculates the refund on Collection fees for canceled orders and whether Flipkart has paid it to the seller correctly or not. The system shows the total amount that is overpaid in the Collection fee refund for all orders.
  • Collection Fee – Underpaid (Refund)
    • When an order is refunded the Collection fee gets reimbursed to the seller. Here the system calculates the refund on Collection fees for canceled orders and whether Flipkart has paid it to the seller correctly or not. The system shows the total amount that is underpaid in the Collection fee refund for all orders.
  • Collection Fee Not Charged
    • Here the system shows the total of all the orders where the collection fee has not been charged.
  • The system shows the total amount for each of these and the total count, which is the total number of orders under each fee and the difference.

To see the other fee verification processes click here

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