To verify marketplace fee invoices against actual deductions, collect the invoice, the settlement report and your agreed fee terms. Match invoice totals to settlement deductions by period and fee type, then recompute a sample of orders using the rate card. Log every variance with order IDs, and raise disputes with evidence within the marketplace's claim window.
Know the three documents you are comparing
Most fee errors go unnoticed because teams check only one document. A proper verification needs three, and each answers a different question.
- Fee invoice: what the marketplace says it charged you for a period, usually grouped by fee type with GST shown.
- Settlement report: what was actually deducted from your payouts, often at order or shipment level.
- Agreement and rate card: what you agreed to pay, including commission slabs, fixed fees, shipping or logistics charges and any amendments.
Verification is a three-way match. The invoice should equal the settlement deductions, and both should equal what the agreed terms produce when applied to your orders.
Step 1: Build a fee map from your agreed terms
Before opening any invoice, write down what you should be charged. Pull the latest signed agreement, the current rate card and any email or portal notices that changed terms. Do not rely on memory or on an old rate sheet.
- List every fee type: commission, fixed or closing fee, shipping or logistics, collection or payment fee, return-related charges, and any promotional or advertising charges you opted into.
- Note how each is calculated: percentage of selling price, flat amount, weight slab, or category-based.
- Record the effective date of each term, since rates can change mid-period.
- Note how GST and any tax collected at source appear on invoices and settlements. Rates and treatment change, so confirm the current position with your tax adviser and the marketplace's published terms rather than assuming.
If a rate is not clearly documented, treat that as the first finding. You cannot audit a charge you cannot define.
Step 2: Match invoice totals to settlement deductions
Start at the top level. For the same period, compare each fee type on the invoice with the sum of that fee type in the settlement reports.
- Align periods. Invoices may follow a calendar month while settlements follow payout cycles, so match by order or shipment date, not payout date.
- Group settlement lines by fee type using the same categories as the invoice.
- Compare totals fee by fee, excluding tax first and then checking tax separately.
- Flag any difference, even small ones. Small recurring differences often point to a systematic rule error.
Items on an invoice with no matching settlement line, or deductions with no invoice line, are both worth escalating. They usually mean timing adjustments, manual debits or credit notes that were not carried across.
Step 3: Recompute fees at order level
Matching invoice to settlement only proves the marketplace is consistent with itself. To prove it is correct, recompute from your terms. For a large catalogue, begin with a sample and then widen.
- Pick orders across categories, price bands, weight slabs and fulfilment types.
- Include returned, cancelled and partially returned orders, where errors are most common.
- Apply the rate card to the order's selling price or weight as the agreement specifies.
- Compare your expected fee with the deducted fee line by line.
If the sample shows a pattern, such as one category always overcharged, run that segment in full. Spreadsheets work for this, but they become slow once order volumes run into the lakhs, so build a reusable template with lookup tables for rates rather than typing formulas each month.
Common mismatches to look for
| Mismatch | What to check |
|---|---|
| Wrong commission slab | Category mapping and the price on which commission was calculated |
| Fee on returned orders | Whether commission was reversed as per your terms |
| Duplicate deductions | Same order ID or shipment ID charged twice |
| Weight or size slab errors | Declared versus charged weight in shipping fees |
| Stale rates | Old rate applied after the effective date of a change |
| Unexplained adjustments | Manual debits without a reference or credit note |
Each of these is a pattern, not a one-off. Tag every variance with a reason code so that next month you can see which issues repeat.
Step 4: Log, dispute and repeat on a schedule
A variance only matters if you can recover it. For each one, record the order or shipment ID, the fee type, the amount charged, the amount expected, the clause or rate card line that supports your figure, and the settlement reference. Check the marketplace's claim or dispute window in your agreement and raise cases well before it closes.
Run this monthly, or per settlement cycle if volumes are high. Tools can take over the repetitive part: MarketplaceMetrics by Fundle reconciles sales and settlements, checks commissions and fees against agreed terms, and tracks returns and recovery cases. Myntra Excel reports are reviewed today, and other marketplaces are in scope discussion, so confirm coverage for your channels before relying on it.
Whether you use a tool or a spreadsheet, keep the same discipline: terms first, totals second, orders third, evidence always.
Worked example
Illustrative example only. All figures are assumed for demonstration and are not real rates or results. Suppose a brand reviews one month for a single marketplace.
| Fee type | Invoice (₹) | Settlement deductions (₹) | Recomputed from agreed terms (₹) |
|---|---|---|---|
| Commission | 1,18,000 | 1,18,000 | 1,12,500 |
| Fixed fee | 24,000 | 24,000 | 24,000 |
| Shipping fee | 36,400 | 38,200 | 36,400 |
| Total | 1,78,400 | 1,80,200 | 1,72,900 |
Findings: commission on the invoice is ₹5,500 above the recomputed figure, perhaps due to a wrong category slab. Shipping deductions in the settlement are ₹1,800 higher than the invoice, which suggests deductions not reflected on the invoice. Total settlement overdeduction against agreed terms is ₹7,300 (₹5,500 + ₹1,800). The brand would raise two separate cases with order IDs and rate card references.
Questions and answers
How often should I verify marketplace fee invoices?
Monthly is a sensible minimum, aligned to invoice dates. Brands with high order volumes or frequent returns often check each settlement cycle, because errors found sooner are easier to trace and are less likely to fall outside the marketplace's dispute window.
Where do I find the correct fee rates to check against?
Use your signed seller agreement, the current rate card and any written amendments or portal notices. Do not copy rates from blogs or old sheets. Confirm the effective date of each rate, and ask your account manager if any term is unclear.
What if the invoice matches the settlement but both look wrong?
Then the marketplace is consistent but possibly incorrect. Recompute sample orders from your agreed terms, identify the pattern, and raise a dispute citing the specific clause or rate card line, with order IDs and settlement references as evidence.
Can I do this in Excel, or do I need a tool?
Excel works for small volumes if you use lookup tables for rates and consistent fee categories. As orders, returns and marketplaces grow, manual matching becomes slow and error-prone, and a dedicated reconciliation tool can save time and keep dispute evidence organised.