E-commerce Settlement MIS: 7 Checks to Stop Cash Leakage from Marketplaces

E-commerce Settlement MIS is often the missing link between “good sales numbers” and “actual cash in the bank.” Many E-commerce founders do everything right marketing, pricing, fulfilment yet still feel uneasy when they check their bank balance. Sales look fine, orders are flowing, but cash never matches expectations.

This happens not because sales are weak, but because settlement-level leakages go unnoticed. And unless you track settlements properly inside your E-commerce Settlement MIS, these small gaps repeat every week and quietly reduce cash flow.

What this blog will help you do

In this blog, you’ll learn:

• Where settlement leakages usually happen
• Why dashboards and order reports don’t show them
• And 7 practical checks you can add to your MIS to protect your cash

If you sell on Amazon, Myntra, Nykaa, or any marketplace, this is worth your time.

1.Check Whether Gross Sales Match Settlement Sales

Most founders look at order reports and assume that number will eventually hit the bank. However, settlement reports often tell a different story.

What usually happens:

• Orders are cancelled after dispatch
• Returns are adjusted differently
• Discounts are netted off at settlement level

MIS Check: Always compare Order Gross Sales vs Settlement Gross Sales for the same period.

If there’s a gap, don’t ignore it. First mismatches often point to deeper leakage patterns.

2.Track Settlement Deductions Line by Line

Marketplaces deduct money in many small ways. Individually, they look harmless. Together, they drain cash.

Common deductions include:

• Collection fees
• Commission
• Fixed closing fees
• Refund processing charges
• Penalties or adjustments

MIS Check: Create a deduction-wise settlement summary instead of looking only at net payout.

If a deduction repeats every week, it deserves a review.

3.Monitor Settlement Timing Delays

Cash flow stress often comes from when money is received, not how much.

What founders assume: “Sales today = cash in a few days.”

What actually happens:

• Different marketplaces have different settlement cycles
• COD orders settle slower
• Returns delay payouts further

MIS Check: Track expected settlement date vs actual bank credit date.

Timing gaps affect working capital planning more than people realize.

4.Match Return Adjustments with Actual Returns

Returns are one of the biggest sources of silent cash loss.

What goes wrong:

• Refund deducted twice
• Return deducted but product not received
• Quality rejections without proof

MIS Check: Reconcile Return Deductions vs Physical Returns Received.

If cash is deducted, inventory must come back—or the deduction must be challenged.

5.Validate Shipping and Logistics Charges

Shipping costs are often auto-applied and rarely questioned.

Typical issues:

• Incorrect weight slabs
• Higher zone charges
• Reverse logistics charged multiple times

MIS Check: Compare charged freight vs agreed rate card monthly.

Even a ₹10–₹20 error per order becomes significant at scale.

6.Reconcile TCS, GST, and Tax Adjustments

Tax deductions look correct on paper but often create confusion in cash flow.

Common problems:

• TCS deducted but not tracked
• GST adjustments not reflected in books
• Settlement GST not matching GSTR data

MIS Check: Link settlement tax deductions with GST and accounting records.

Treat tax mismatches as blocked cash, not accounting noise.

7.Compare Net Settlement vs Expected Contribution

This is the final and most important check.

Ask one simple question: “After all deductions, is this platform still profitable?”

MIS Check: Compare Net Settlement Amount vs Expected Contribution Margin for each platform.

Some platforms look good in sales reports but destroy margin at settlement level.

Final Thought

Settlement leakages don’t feel dangerous because they’re small and routine. But over time, they quietly reduce liquidity, distort profitability, and create cash stress.

A strong E-commerce Settlement MIS doesn’t chase sales it protects cash. When settlements are reviewed with discipline, founders regain clarity and confidence.

You stop guessing. You stop feeling uneasy about the bank balance. And you finally see where your money really goes.

Quick Reflection for Founders

When was the last time you reviewed your settlement deductions line by line not just the final payout?

Sometimes, one spreadsheet review can save more cash than a month of extra sales.

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