Your Amazon disbursement is usually lower than sales because it is net of referral and closing fees, shipping or FBA fees, refunds and returns, tax withholding (TCS and TDS), reserves, ad charges and earlier negative balances. It also follows settlement timing, not order date. Open the settlement report for that period and match each line to your own sales figure.
A disbursement is not your sales figure
The first thing to accept is that the dashboard sales number and the bank credit measure different things. Sales show what customers ordered or paid for. A disbursement is the net balance Amazon releases for a settlement period, after adding credits and subtracting every charge and adjustment that fell in that period.
Three differences cause most of the confusion:
- Order date vs settlement date: an order placed this week may settle next cycle, while a return from last month can reduce this cycle's payout.
- Gross vs net: the order value includes amounts you never keep, such as fees and tax collected at source.
- One payout, many periods: carried-forward balances can pull earlier shortfalls into today's credit.
Common deductions that reduce the payout
Open your settlement or payments report and look for these categories. The exact names and rates depend on your category, your seller agreement and Amazon's current rate card, so confirm them there rather than relying on memory.
- Referral fee and closing fee: charged per order as per the fee schedule for your category and price band.
- Shipping or fulfilment fees: weight handling, Easy Ship or FBA charges, which can change if the item's weight or size slab is recorded differently from what you expect.
- Refunds and returns: the sale value reversed when a customer returns an item, sometimes with fees that are not fully reversed.
- Tax withholding: TCS under GST and TDS under the Income Tax Act may be withheld. Confirm the applicable rates and how to claim credit with your tax adviser.
- Advertising and other service charges: depending on how your account is set up, these may be billed separately or adjusted against balance.
- Claims and chargebacks: A-to-z claims or similar adjustments can show as negative lines.
- Reserve or held amounts: a portion may be held back for a period.
Timing and carry-forward effects
Not every shortfall is a loss. Many are timing differences that reverse later. Typical cases:
- Orders delivered close to the cycle cut-off settle in the next cycle.
- Orders still within the return window may be held before release.
- A negative balance from a previous period, for example heavy refunds in a month with low sales, is netted off the next disbursement.
- A reserve held this cycle may be released in a later one.
Before calling anything an error, mark each gap as either timing (will reverse) or permanent (a real charge or deduction). Only permanent items can be wrong in a way that needs a dispute.
How to trace the gap step by step
- Download the settlement report for the exact period of the bank credit. Match the total to the amount received.
- Group lines by type: sales, fees, refunds, taxes withheld, adjustments, opening and closing balances.
- Compare the sales line to your own order data for the same settled orders, not the same order dates.
- Recalculate fees on a sample of orders using your agreed terms and the current rate card.
- List refunds and returns separately and check whether the returned item actually reached you or was reimbursed properly.
- Check for unexplained adjustments, repeated charges and balances carried from earlier periods.
- Write the difference as: timing, expected deduction, or query. Raise only the query list with the order IDs.
Which differences are worth raising with Amazon
Focus on items where the charge does not match your agreed terms or the facts of the order.
| Pattern | What to check |
|---|---|
| Fee higher than rate card | Category, price band and fee slab applied to that order |
| Weight or size slab mismatch | Your catalogue dimensions against what was charged |
| Return not received or damaged | Return status, condition and any reimbursement due |
| Duplicate or unexplained adjustment | Order ID, date and description in the report |
| Tax withheld that looks off | Invoice values and your tax adviser's view |
Keep order IDs, report extracts and screenshots ready. Time limits apply to claims, so check the current policy in Seller Central and do not wait months to raise them.
Doing this across Amazon and Flipkart every month
Flipkart settlements follow a similar logic: commission, fees, returns, tax withholding and timing all sit between sales and the payout, though the report layout and terms differ. Check the seller agreement and settlement report format of each marketplace.
Doing this manually in spreadsheets works for a few hundred orders and breaks down at scale. Tools like MarketplaceMetrics by Fundle reconcile sales against settlements, check commissions and fees against agreed terms, and track returns and recovery cases. Myntra Excel reports are reviewed today, and other marketplaces are in scope discussion, so confirm current coverage before you plan around it.
Worked example
Illustrative example only. These ₹ figures are made up to show the method and are not real rates or results.
| Item | Amount (₹, illustrative) |
|---|---|
| Payout you expected | 82,000 |
| Actual disbursement | 71,500 |
| Gap to explain | 10,500 |
| Refunds for returns from an earlier period | 4,200 |
| Shipping and weight fees above your estimate | 2,300 |
| Advertising or service charges not in your estimate | 1,800 |
| Tax withheld (TCS and TDS) not in your estimate | 1,500 |
| Unexplained, to query | 700 |
The first four lines total ₹9,800 and are explainable deductions or timing. Only the ₹700 and possibly the shipping fee difference need a query, with order IDs attached.
Questions and answers
Why is my Amazon disbursement less than my sales in India?
Because the payout is net of referral and closing fees, shipping or FBA charges, refunds, tax withholding, ad or service charges and any carried-forward negative balance. It also follows settlement timing, so orders and returns may fall in different periods than your sales view.
Where do I find the breakdown of an Amazon payment?
In Seller Central, open the Payments section and download the settlement or date range report for the period. Match its total to the bank credit, then group lines by fees, refunds, taxes and adjustments. Menu names change, so check the current layout.
Are TCS and TDS deducted from my Amazon payout?
Tax may be withheld at source on marketplace sales, and it appears as separate lines in the report. Rates and credit claiming rules change, so confirm the current position with your tax adviser and check the amounts against your tax statements.
How do I know if a deduction is an error?
Compare the charge with your seller agreement, the current rate card and the order facts such as category, weight and return status. If it does not match, collect the order IDs and report extracts, then raise a case promptly within the claim window.