A seller-funded discount reduces what the brand receives; a marketplace-funded discount is paid by the marketplace and should not reduce the brand's settlement. Reconcile each order against the price base and promotion terms that apply to it, and confirm the funding source from the settlement report or the agreed promotion terms before calling any difference an overcharge.
Why the funding source matters
A customer sees one discounted price. Your settlement sees two possible stories: either the brand funded the discount and accepts a lower sale value, or the marketplace funded it and should make up the difference. If your check treats every discount the same way, you will either miss real shortfalls or raise claims that are not valid.
Where to find it in the reports
- Look for separate columns for seller discount and marketplace or platform discount in the settlement or sales report.
- Check the promotion or event agreement for the period: which share was committed by the brand.
- Note whether commission is calculated on the listed price, the selling price or another base defined in your terms.
- Keep the report version and filename so the basis can be shown later.
How to reconcile each type
For seller-funded discounts, expected settlement starts from the discounted value the brand agreed to. For marketplace-funded discounts, the brand's expected value should not fall by the funded amount. In both cases, apply the commission and fee base defined in your agreement, not a base assumed from another seller or channel.
Common mistakes
- Reading the customer price as the seller's settlement base.
- Ignoring co-funded promotions where the cost is shared.
- Using the current promotion terms for an order placed in an earlier period.
- Raising a claim before confirming which party funded the discount.
Worked example
Illustrative example only. A product lists at ₹2,500 and sells at ₹2,000 during an event. If the ₹500 discount is fully seller-funded, the expected settlement is calculated from ₹2,000. If ₹300 is marketplace-funded and ₹200 seller-funded, the brand's expected base is ₹2,300 under those illustrative terms. A settlement built on ₹2,000 would leave a ₹300 difference to investigate. Your actual base depends on your agreement.
Questions and answers
Does a marketplace-funded discount reduce my payout?
It should not reduce the brand's share by the funded amount, but the exact treatment depends on your promotion terms and how the marketplace reports it. Check the settlement columns and the agreed terms for that period.
Is commission charged on the price before or after the discount?
It depends on the commission base defined in your agreement. Some terms use the selling price and others define a different base, so read your contract rather than assuming a standard.
What evidence do I need to question a discount deduction?
The order row, the settlement row, the promotion terms for that period showing who funded what, and your calculation of the expected amount.