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.
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.
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.
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.
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.