Vinculum Knowledge Central

Vin Reco Overview

If you are selling online on various marketplaces, you can expect a growth of up to five times in your revenue. But with increased sales, you can lose up to 3% of your hard-earned revenue due to marketplace leakages, under multiple scenarios like commission overcharge, shipping overcharge, pick-pack overcharge among others. 

Brands and Retailers who sell on multiple marketplaces and fulfil huge number of orders monthly, trust existing marketplace payment practices to compensate them in a fair manner for sales and returns of the products.

But they may not have effective mechanisms in place to check all the glitches in a marketplace’s payment system. These lead to severe leakages in revenue that can amount to significant profit deficit.

You could be LOSING MILLIONS IN TRANSACTIONS during the festival sale!!

With Vin Reco – Vinculum’s Payment Reconciliation System, you can now find payment leakages on marketplaces, claim your money back and save big during the festival sale.

Vin Reco can be leveraged for the following:

• Finding Leakages from Marketplace Payments
• Identify different scenarios for leakages
• Helping in Raising Cases to Claim Money
• Dashboard with curated data
• Identify negative Cash-Flows

Vin Reco is required because leakages can occur due to the following reasons:

• Technical Glitches
• Wrong policy calculations
• Wrong returns marked/not marked
• Missing inventory cases
• Not following the SLA
• Wrong dimensions, category listings

These leakages can cause overcharges, deductions, missing reimbursements, product damage or inventory loss.

Vin Reco can help resolve the following issues:

• Multiple times payments and deductions against a single order due to multiple Formats for various marketplaces
• Complicated marketplace reports & uninformed deductions causing tiresome calculations on multiple payments under sales & returns

Unmanageable follow ups with the e-commerce seller support team and missing out on claims window

Use Cases

Omni Channel

Under Omni Channel, the following use cases are supported:

• Store commission calculation
• Logistics Reconciliation 
• Clear visibility of the commissions to be paid to stores (COCO, Franchise) 

Note: Current integration with eRetail only

Marketplaces

Under Marketplace, the following use cases are supported:

• Missing Inventory
• Commission Overcharges
• Shipping Overcharges
• Return Leakages
• Replacement tracking 
• Reimbursements

Note: This list is not exhaustive 

OMS, Marketplace

Under OMS, Marketplace, the following use cases are supported:

• Reconciling OMS data with Marketplace data to find out leakages within the 2 systems 
• Dashboard to show the leakages separately than the marketplace reconciliation

Financial Systems

Under Financial Systems, the following use cases are supported:

How does Vin Reco leakage reports look like?

Vin Reco Reports Dashboard

Vin Reco reports dashboard provides scenario-wise report for each order received. Here are the scenario-wise reports:

All Orders Report

This report provides insights about the orders and charges deducted by the marketplace. It explains the amount a seller should receive after all deductions.

For example, if a seller receives INR 4,250 for a product listed for INR 5,000; the report will show the reason why INR 750 is deducted.

Pick and Pack Overcharge Report

This report helps to identify the amount overcharged under the Pick and Pack fee. It shows both – Amazon levied pick and pack charges and actual pick and pack charges. With this report, the difference is calculated which can be claimed from marketplaces within the prescribed time-frame as per their policies.

Shipping Overcharge Report

This report contains two scenarios:

• The weight handling charge levied by marketplaces which can be reconciled on similar logic of Pick and Pack.
• The shipping location or area i.e. the regional/zonal/national location where the product is shipped and the charges on it.

The system identifies the overcharges in each case and gives you the recoverable amount as shown in the sample report below.

Commission Overcharge Report

This report gives information on the actual commission and commission charged. Then the difference i.e., overcharges can be claimed from the marketplace.

For example, in Amazon, as a product/SKU is listed, it provides its own ASIN (Amazon Standard Identification Number) through which the product category is tracked and as every marketplace has defined percentage of commission for particular product category, the system processes this information and calculates the exact percentage and accurate amount to be paid as commission fees. Any discrepancies in the charged and the actual amount can be claimed from marketplace under the time frame given in the policies.

Replacement without Reimbursement Report

This report identifies the leakages in the case of replacement orders. When buyers request for replacement of an order, many scenarios arise under which the seller should get a refund from the marketplace (either a replaced product or compensation for the product).

But there are certain cases when marketplaces fail to provide the replacement and even the compensation. This scenario is very complex to identify as a new Return ID is generated for the product.

Note: Vin Reco tracks this Return ID and matches it to parent Order ID

Inventory Missing Report

This report gives the list of missing inventories. When a customer orders a product from the marketplace, the seller ships the product using 3PL or via marketplace fulfilment service depending upon his mode of business.

If for some reason, the customer cancels the order and requests for the return of product, marketplace is supposed to deliver the order back to the seller. The leakage in terms of missing inventory arises when marketplace fails to deliver the product back and doesn’t notify the seller. This report gives a list of such inventories.

The column – ‘FBA Reimbursement’ in the report below is empty. It shows that seller has neither got the returned item back in warehouse even after a waiting period of 45/60 days, nor has he got any reimbursement. In short, it’s a loss of money as well as the original product itself.

Reimbursement Report

This report shows the increase in your business profits. It contains the details of each case raised by Vinculum’s Dispute Management Team i.e., the Case ID, Case Raised Date and Time, Case Subject (scenario) and link for the same, Resolution Status, Reimbursement ID and the Reimbursement Amount that will be credited in your seller account.

We share this report on monthly basis with all our clients to maintain transparency in our work regarding the dispute management services.

Conclusion

Each marketplace has its own commission structure, payment terms, fees, penalties and other charges. Without an effective accounting and reconciliation process, it’s easy to lose track of your payments. In fact, around 1% to 3% of GMV is lost into leakages every year due to inefficient tracking. 

Marketplaces owe you this money! 

Our payment reconciliation system detected leakages worth 70 crores INR in 2020.

Find leakages in your financial transactions of orders, inventory and returns with Vin Reco.