Track Returns Received vs Returns Refunded

Why received and refunded numbers rarely match

Returns received is a physical event: the parcel reaches your warehouse or the marketplace's return centre and is scanned in. Returns refunded is a financial event: the customer is refunded and the marketplace reverses the sale in your settlement, often along with commission and other fee adjustments. The two happen on different dates and in different systems.

Common reasons for a gap:

• Timing: the refund is deducted before the parcel reaches you, so it looks unreceived for a few days or weeks.
• RTO versus customer return: an undelivered parcel returning to you is not the same as a customer-initiated return, and reports may label them differently.
• Condition issues: the item arrives damaged, used, or is the wrong product, so it is received but not sellable.
• Lost in transit: the refund is deducted but the parcel never reaches you.
• Partial refunds: the refunded value differs from the original sale value.

Collect the four data sets first

You cannot reconcile from the settlement report alone. Gather these for the same period:

1. Settlement report: return and refund lines with order ID, SKU, date and amount. Column names differ by marketplace, so check your own report.
2. Marketplace returns or RTO report: return ID, status (initiated, picked up, in transit, delivered to seller) and reason.
3. Your warehouse inward records: scan date, SKU, quantity and condition grade for each returned parcel.
4. Seller agreement and rate card: the rules on return fees, reverse shipping, claim windows and what counts as a valid claim. Confirm the latest version with your account manager.

A step-by-step method to match them

1. Fix a period and cut-off. Use the settlement period or a calendar month, and note the cut-off date for received scans.
2. Create a common key. Use order ID plus SKU, or return ID plus SKU, in all datasets. Remove duplicates and clean formatting differences.
3. List refunds from the settlement. Include units and the value deducted for each.
4. List receipts from your inward scans. Keep the condition grade alongside each.
5. Match the two lists. A lookup or pivot on the common key is enough to start.
6. Sort the differences into buckets (next section).
7. Age and value open items. Count days since the refund date and multiply units by the refunded value.

The buckets and what each one means

• Refunded and received, sellable: clean. Check only that the fee reversals match your agreed terms.
• Refunded, not received: the main recovery bucket. Wait for the normal transit window, then raise a claim if the parcel has not arrived.
• Refunded, received damaged or wrong: a dispute bucket. Photos, unboxing videos and the condition grade are your evidence.
• Received, not refunded: the customer may have been refunded in a later period, or the return was rejected. Check before assuming a loss.
• Refunded value differs from sale value: check for partial refunds, coupon splits or fee adjustments against the agreement.

Raise recovery claims before the window closes

Claim windows are set by your seller agreement or the marketplace's current policy, so confirm the exact number of days rather than relying on memory. Missed windows are the most common reason valid claims are lost.

1. Sort open items by days remaining in the claim window.
2. Attach evidence: return ID, tracking history, inward scan records, photos and videos.
3. Raise the case on the seller panel and record the case ID against each line.
4. Follow up on a fixed schedule.
5. When a credit arrives in a later settlement, tie it back to the case so it is not counted twice.

Returns can also affect GST and TCS treatment through credit notes and adjusted reports. Do not assume treatment from the settlement alone; confirm with your tax adviser.

Make it a monthly routine

Run this reconciliation every settlement cycle, not once a year. Keep a running register of open items with age, value, case ID and status, and review it with your finance and warehouse teams.

Doing this in spreadsheets works at low volumes. As SKUs and return volumes grow, MarketplaceMetrics by Fundle can reconcile sales and settlements, check fees against agreed terms, and track returns and recovery cases in one place. Myntra Excel reports are reviewed today, and other marketplaces are in scope discussion.