India’s e-commerce market has seen a significant rise over the last decade. With marketplaces like Amazon, Flipkart, Meesho, and many more – the ability to sell online has become available to every business regardless of their size. Yet as the number of marketplaces to sell on grows, so do complexities with seller accounts. Every marketplace has its own rules, policies, payment settlements, and much more. With increased sales, it becomes hard to keep track of deductions in different marketplaces. Sellers often find that the amount of money due to them doesn’t match their ledger. Yet, with multiple factors affecting the final value and no centralized system to track all of them – it becomes hard to tell which one has caused the discrepancy.
That’s when reconciliation comes into play – a process involving special software made to track every seller’s expenses linked to marketplace sales. In this case, reconciliation tools are separate from regular accounting software. This type of service helps marketplace sellers identify and understand all deductions, payments, and profits in their sales.
The most common problem arising with marketplace selling is the inability to calculate accurate profits. Even if a seller’s sales are doing well, an incorrect estimation of expenses will lead to incorrect numbers. Every marketplace seller’s bottom line is affected by multiple factors like commissions, shipping, returns, ad costs, warehousing and storage, payment-gateway fees, and more. Without reconciliation, businesses will be blind to such expenses and their effect on the final profit.
Finally, reconciliation platforms save you from having to do the complex calculations yourself. Contemporary reconciliation software can take into account sellers’ marketplace settlements and analyze them alongside sales to determine the relevant expenses. You don’t have to waste your time trying to find the necessary numbers in some Excel sheet – just make sure you know where to look.
TheEcomWay is one of the companies that provide marketplace reconciliation services. It is a technology platform that enables Indian online sellers to navigate the complicated e-commerce landscape with relative ease.
TheEcomWay, a platform that promises to make marketplace reconciliation easy for sellers, has announced its availability on marketplaces such as Amazon, Flipkart, Meesho, among others. TheEcomWay allows users to view the reconciliation statement of each order and compares the deductions with the amount actually credited to their bank accounts, thus enabling them to understand the breakdown of each marketplace.
One of the key aspects of TheEcomWay is its ease of use and speed. TheEcomWay has simplified the process for creating reconciliation reports to a three-step process, thus helping the user create a reconciliation report in about thirty seconds, thereby saving them hours if they were to manually enter the details. For businesses with hundreds and thousands of orders being placed every month, this could mean the ability to save a significant amount of time.
Accuracy is crucial when it comes to reconciliation software, as the user is relying on the information provided to take critical business decisions. Even a minor error in the calculations can lead to businesses miscalculating their profits. According to the company, its reconciliation engine currently provides an accuracy rate of 98.53%.
TheEcomWay was built by a team of professionals who have worked at organizations such as Microsoft, Amazon, Best Buy, Walmart, and Flipkart. With experience in working at big tech companies, the founders recognized the problem that many small businesses face when it comes to comprehending the reconciliation statements of marketplaces and resolved to build a solution to help small businesses better understand their finances.
With sellers on board, the company has witnessed a significant increase in demand for such a platform that provides sellers the ability to track the payments made to their businesses. As India continues to see an increase in online purchases, businesses are compelled to participate in multiple marketplaces to meet their sales objectives. At the same time, they are required to track the finances generated from each of these marketplaces.
Perhaps one of the most impressive aspects of TheEcomWay is its 100% refund policy in case a customer is not satisfied with the app’s performance. A similar refund policy is uncommon for most marketplace reconciliation software, which highlights the confidence, TheEcomWay has in its product.
TheEcomWay aims to go beyond simply providing reconciliation statements to marketplaces and in the future, the company wants to enter into agreements with other e-commerce marketplaces in India so that it can provide its reconciliation service to businesses that operate on those marketplaces.
As more and more companies are beginning to adopt omnichannel retailing as their business model, there is a growing need for reconciliation software for companies that operate on multiple marketplaces. Even though selling products on multiple marketplaces has long been seen as an effective way to boost sales, companies need to know how much money is being earned on each marketplace and what percentage of profits is being cut away by the various marketplaces.
