To audit marketplace commission, collect your seller agreement, rate card and settlement reports. Map each order line to its category, date and price base. Recompute commission using the agreed rate, compare it with the amount deducted, and group the differences by cause. Raise disputes with order-level proof inside the window your agreement allows.
What a commission audit actually checks
The audit answers one question: for every order line, did the marketplace charge the percentage and on the base you agreed? Differences usually come from four places:
- Wrong mapping: the product sits in a different category, brand tier or fulfilment type than your rate card assumes.
- Wrong price base: commission applied on MRP, selling price, or a value that includes or excludes taxes or discounts, when your terms say otherwise.
- Wrong version of terms: an amended or expired rate card is still being applied on the order date.
- Slab or tier errors: a threshold-based rate is applied incorrectly.
Definitions differ by marketplace, so always read your own seller agreement and the rate card version in force on the order date. Do not assume another seller's terms apply to you.
Gather the right documents first
Without the source documents, you are only guessing. Collect these for the period you are auditing:
- Signed seller agreement and every amendment or commercial email that changes terms.
- The rate card, with effective dates for each version.
- Settlement or payment reports showing commission and fee deductions per order or SKU.
- Order, sales and returns reports for the same period.
- Your catalogue master with category, brand and MRP for each SKU.
If a document is missing, ask your marketplace account manager for it in writing before you start. Myntra Excel reports can be used for this kind of review; for other marketplaces, check which report carries order-level fee detail.
Build a rate-mapping sheet
Convert your rate card into a lookup that a spreadsheet can use. One row per category, brand or condition, with the agreed commission and its validity dates.
| Field | Where to find it | Why it matters |
|---|---|---|
| Category / sub-category | Rate card, catalogue master | Determines which rate applies |
| Agreed commission rate | Rate card, agreement, amendments | The benchmark for recomputing |
| Price base | Agreement definitions | Changes the commission amount |
| Effective from / to | Rate card version history | Avoids using the wrong version |
| Tax treatment | Settlement report, tax adviser | Keeps commission and tax lines separate |
Do not type rates from memory. Confirm the latest terms from your agreement or the marketplace's current rate card.
Recompute commission line by line
- Clean the settlement data. One row per order line, with order date, SKU, sale value and commission deducted.
- Attach the mapping. Join each row to your category and the rate card version valid on the order date.
- Recompute. Expected commission = agreed price base × agreed rate. Keep tax on commission as a separate column.
- Compare. Variance = commission charged minus expected commission.
- Handle returns. Check whether commission was reversed or adjusted for returned items as your agreement provides.
- Filter out noise. Ignore rounding differences, and set a tolerance you can defend.
Sort by variance value, then by SKU and category. Repeated errors on the same SKU usually point to a mapping problem, not a one-off glitch.
Classify variances and raise disputes
Group the variances by cause before you contact the marketplace. A dispute that says 'commission is wrong' gets ignored; one that says 'these 42 order lines in category X were charged above the agreed rate' gets reviewed.
- Overcharge: charged above expected. Attach the rate card page, the agreement clause and the order list.
- Undercharge: note it, because it may be reversed later and affect your cash planning.
- Unclear: the base or term is ambiguous. Ask for the marketplace's calculation in writing.
Check the dispute window and escalation steps in your agreement, since late claims may be rejected. Log each case with a status, the amount claimed and the amount recovered.
Turn it into a monthly routine
One audit finds old errors; a routine stops new ones piling up. Run the check after each settlement cycle, update the mapping sheet whenever terms change, and review repeat offenders every month. Tools like MarketplaceMetrics by Fundle can do the reconciliation and fee checks against agreed terms, and track recovery cases, so your team spends time on disputes rather than spreadsheet joins. Pricing is a tailored quote, and marketplaces beyond Myntra are a scope discussion.
Worked example
Illustrative example only. The rates and amounts below are made up to show the method; they are not real marketplace rates.
| Order line | Price base (₹) | Agreed rate | Expected (₹) | Charged (₹) | Variance (₹) |
|---|---|---|---|---|---|
| A | 1,200 | 15% | 180 | 216 | 36 |
| B | 800 | 15% | 120 | 120 | 0 |
| C | 2,000 | 12% | 240 | 300 | 60 |
Total overcharge in this sample: ₹96. Line A was charged at 18% instead of 15%, and line C at 15% instead of 12%. Both lines would go into a dispute file with the rate card page and order references. Tax on commission is excluded from this table.
Questions and answers
How often should I audit marketplace commission?
Ideally after every settlement cycle, so errors are caught within your dispute window. If that is not possible, run at least a monthly review and a deeper quarterly check whenever your rate card, categories or product mix change.
What if my rate card is unclear on the price base?
Ask your account manager to confirm in writing which value commission is applied on, such as selling price or MRP, and whether discounts or taxes are included. Keep that reply with your agreement, and use it as your audit benchmark.
Can I audit commission using only Excel?
Yes, for small volumes. Use lookups to map categories and rates, then recompute and compare. It becomes hard to maintain with many SKUs, rate versions and returns, which is where purpose-built reconciliation helps.
Where do I find the correct commission rate?
Your signed seller agreement, the current rate card and any written amendments are the sources. Do not rely on memory or another seller's numbers. Confirm the latest terms with the marketplace before treating a charge as an error.