What is Marketplace Reconciliation?

Marketplace Reconciliation is a critical accounting process for e-commerce businesses that sell on platforms like Amazon, Flipkart, or Myntra. It involves matching the sales, fees, returns, and final payout data provided by the marketplace with the company's own internal sales records and bank statements.

For Startups: This process is often complex and time-consuming due to the various fees charged by marketplaces (commission, shipping fees, advertising fees, etc.). Without proper reconciliation, a D2C startup cannot have an accurate picture of its channel profitability or ensure it has received the correct payment. Automating this process is key to scaling an e-commerce business effectively.

Example: An accountant reconciles the monthly sales report from Amazon, accounting for all FBA fees and returns, to ensure the final payment received in the bank matches the expected amount.