Understanding Marketplace Reconciliation For Online Sellers
we at InterSell felt the need for a complete guide on marketplace reconciliation for all E-commerce sellers. This application will make you understand all the stages where there is revenue leakage and what parameters you should keep in consideration for marketplace reconciliation
Let’s start with the general definition of “Reconciliation” or “Account Reconciliation”.
Account Reconciliation is the process of comparing internal financial records against monthly statements from external sources—such as a bank, credit card company, or a supplier/vendor/customer other financial institution—to make sure they tally with each other.
In our discussion, the external source is an e-commerce marketplace such as Amazon, Flipkart, Snapdeal, PayTM etc.
In every business, reconciliation of accounts is essential to maintain the financial health of the company, detect frauds, errors and discrepancies and ensure long-term sustenance and profitability of the company. Using software like InterSell to reconcile your marketplace business does most of the work for you and saves over 99% of the time for you, but there is still that bit of human intuition and intelligence required to make the reconciliation process fool-proof.
Many e-commerce sellers are unable to complete the marketplace reconciliation process in a timely and accurate manner, which introduces risks, leakages and losses and eventually winds up business. Sellers that adopt a more automated and continuous reconciliation approach benefit from a more controlled and preventive environment and reduced risk of misstatement.
To understand the marketplace reconciliation process in detail, we will first list down the basic steps involved in the reconciliation in a traditional business environment.