Each month, export sales, returns and settlement reports for the same period, then match every return to its original order, its warehouse receipt and its settlement adjustment. Classify each return by type, flag items not received, damaged or wrongly deducted, and raise claims within the window in your seller agreement. Log each case with amount, date and status, and review ageing at month end.
What a monthly returns and claims audit covers
A returns audit answers three questions: did every return that the marketplace recorded actually reach you in sellable condition, was the money adjusted correctly in your settlement, and have you claimed what you are owed?
It sits between operations and finance. Operations knows what physically came back. Finance knows what was deducted. Neither view is complete alone, which is why gaps stay unnoticed for months.
- Customer returns: items returned after delivery.
- RTO (return to origin): shipments that never reached the customer.
- Claims: cases you raise for lost, damaged, wrong or not-received items, or for incorrect deductions.
Collect the right data before you start
Pull everything for the same calendar period, and keep the same order IDs across files. You will need:
- Sales or orders report with order ID, SKU, date and selling price.
- Returns report with return type, reason code and return date.
- Settlement report showing returns adjustments, commissions, fees and reversals.
- Your warehouse inward records, with condition notes or photos for damaged items.
- Your claims or ticket log, with status and reference numbers.
- Your seller agreement and current rate card, so you can check the terms applied.
Do not rely on memory for fee terms or claim windows. They differ by marketplace and change over time, so confirm the latest version in your agreement or seller panel.
The monthly audit, step by step
- Match returns to orders. Every return should link to an original order ID. List any that do not.
- Match returns to settlements. Confirm each return shows a corresponding adjustment, and that commission and fee reversals follow your agreed terms.
- Match returns to warehouse receipts. Compare returns marked as delivered back to you against what you inwarded.
- Classify each exception. Not received, wrong item, damaged, missing reversal, or duplicate deduction.
- Check eligibility and deadlines. Look up the claim window and evidence needed in your agreement or seller support documentation.
- Raise and log claims. Record the amount, date raised, reference and evidence attached.
- Review open cases. Chase anything past the marketplace's stated response time.
Classify returns so the right action is obvious
| Exception | What to check | Likely action |
|---|---|---|
| Return not received | Return status vs warehouse inward | Raise a claim with tracking proof |
| Damaged or wrong item received | Inward photos, SKU and condition | Raise a claim with evidence |
| Commission or fee not reversed | Settlement line vs your terms | Raise a deduction dispute |
| RTO charged unexpectedly | Shipping and RTO fee terms | Verify against the rate card, then dispute |
| Return with no order match | Order ID and date range | Ask marketplace for clarification |
Separating customer returns from RTO matters because the fees, reversals and claim routes can differ. Check how your own agreement treats each.
Track claims through to recovery
Raising a claim is not the end. The audit is only useful if you know what was recovered, what was rejected and what is still pending.
- Keep one register with order ID, claim type, amount, date raised, status and amount recovered.
- Age open claims in buckets, for example under 15 days, 15 to 30 and over 30, so stale cases get escalated.
- Record rejection reasons. Repeated reasons usually point to a process fix, such as better inward photos.
- Confirm that recovered amounts actually appear in a later settlement, not just in a ticket status.
Brands with a high volume of orders often move this into a tool. MarketplaceMetrics by Fundle reconciles sales and settlements, checks commissions and fees against agreed terms, and tracks returns and recovery cases, with Myntra Excel reports reviewed and other marketplaces open to scoping.
Common mistakes to avoid
- Auditing only totals. A matching total can hide offsetting errors.
- Waiting a quarter. Claim windows may lapse, so monthly cadence protects recoverable money.
- Skipping evidence. Photos, AWBs and inward timestamps decide most disputes.
- Mixing periods. A return in March for a February sale should be traced to both months.
- Not reconciling recoveries. Closed tickets are not the same as cash received.
Worked example
Illustrative example only; figures are not real or benchmarks.
In a month, a brand sees 120 returns in the marketplace report but only 108 inwarded at its warehouse. The 12 gap units have an average selling price of ₹1,200, so potential exposure is 12 × ₹1,200 = ₹14,400. After checking tracking, 9 are clearly eligible under the agreement (₹10,800) and are raised as claims. Separately, 4 returns show no commission reversal at ₹180 each (₹720), which is raised as a deduction dispute. The register then tracks ₹11,520 as claimed, with recovery confirmed only when it appears in a settlement.
Questions and answers
How often should I audit marketplace returns and claims?
Monthly is a practical minimum, because claim windows may be short and evidence is easier to gather while events are fresh. High-volume brands may add a weekly check on open claims. Confirm the exact windows in your seller agreement.
What is the difference between a return and an RTO in an audit?
A customer return comes back after delivery, while an RTO is a shipment that returns undelivered. Fees, reversals and claim routes can differ, so tag them separately and check each against the terms in your seller agreement.
Which documents do I need to raise a return claim?
Typically the order ID, tracking or AWB details, return status, your inward records and photos of any damage or wrong item. Requirements vary by marketplace, so check the current seller support guidelines before filing.
Can I do this audit in Excel?
Yes, for lower volumes. Use order ID lookups across sales, returns, settlement and inward files, and keep a claims register. As order volume and marketplaces grow, manual matching becomes slow and error-prone, and a reconciliation tool may help.