Introduction

Retail has experienced a dramatic transformation over the last couple of years. While regular eCommerce enjoyed substantial growth, quick commerce platforms like Zepto, Blinkit, Swiggy Instamart, and BigBasket BBNow have created a significant shift.

Consumers now expect a 10–15 minute delivery, and merchants are eager to get to the consumers via these fast platforms. However, fast delivery generates slow and complex payments.

This is where payment reconciliation comes into play. As a merchant, reconciliation isn’t just bookkeeping or accounting, but rather one of the most critical activities determining either profitable growth in the organisation or avoiding silent losses.

Why is Reconciliation in Quick Commerce Different?

In traditional eCommerce, reconciliation was very straightforward:

A customer places an order → platform issues an invoice → the seller receives payment (less commission/logistics cost).

In Quick-commerce:

• Goods move with speed.
• Panels are often not updated properly.

There are two different payment methodologies (PO and SOR) to follow, resulting in little visibility. The gross sales get murkier when unsold stock, damages, and returns are factored in. Sellers risk a lot without reconciliation:

• Receiving less than owed.
• GES/TDS liabilities for the incorrect dollar amounts, resulting in penalties.
• Loss of visibility on real profits.
• Cash blockage.

For example:

• A seller supplies stock worth ₹10,00,000 to a Quick Commerce platform.
• They expect ₹10,00,000 – ₹80,000 (commission/logistics) = ₹9,20,000 in payout.
• The payout received is ₹8,60,000.
• That’s missing ₹60,000.

Where did it go?

Without reporting and reconciliation, you will never know if the difference is attributable to fees, returns, damaged product or simply human error in reporting.

The Two Quick Commerce Payment Models

1. PO-to-PO (Purchase Order-Based Payments)

This is the simplest approach.

How it works:

• The platform raises a Purchase Order (PO).
• You deliver the goods based on that Purchase Order.
• A Goods Received Note (GRN) confirms the receipt of and acceptance of that stock.
• Then you raise your invoice.
• Payment is then made (after either 30 or 60 days – depending on the Commercial Terms Agreement).

Benefits of PO-to-PO:

• Payments can be predicted!
• Easy matching – Purchase Order → Goods Received Note → Invoice → Payment
• Less reliance on the platform’s sales reports.
• Well-funded forecasting for cash flow.

For example:

• The platform raises a PO for 1,000 units at a price of ₹100 per unit = ₹1,00,000.
• You deliver the order, and the GRN confirms the 1,000 units received.
• You raise an invoice for ₹1,00,000.
• Then the platform makes payment (less deductions – stated as 8% in this case) of ₹92,000 after payment is made within 45 days.

There are no surprises.

2. SOR (Sale or Return Based Payments)

This represents the most common arrangement in Quick Commerce.

Here is how it works:

• You deliver products to the warehouse owned by the platform.
• You only get paid for what is sold.
• If there are unsold items, there will be a later return or adjustment.

Drawbacks of SOR:

• The payment is solely based on the sales information of the platform.
• Having unsold stock creates a potential return and adjustment delay.
• You will need to use FIFO (First In/First Out) tracking of stock levels as it relates to batches of stock delivered based on the sales of that stock.
• The statements can lack clarity, which may result in disputes over the payments.
• The cash flow is unpredictable.

Example:

• You deliver 1,000 units at ₹100 = ₹1,00,000.
• In 30 days, 800 units sell (₹80,000).
• The platform takes a 10% fee = ₹8,000.
• You are paid back ₹72,000 as a result.
• 200 units were unsold → would be returned/adjusted later.
• Therefore, your ₹1,00,000 supply gives you back only ₹72,000 (today) with uncertainty of the 200 units.

That’s why a seller would say, “SOR is like selling with a blindfold on.”

Why Most Platforms Push SOR

SOR alleviates platform risk. They only pay their sellers once they have sold their items. Unsold or returned items get pushed back to sellers from the platform to make this happen.

For sellers, SOR means additional financial risk. For platforms, SOR lessens liability and creates additional operational efficiencies for them. For sellers, this means that reconciliation becomes a necessary function of their business.

Best Practices for Quick Commerce Reconciliation

MSEAS delivers on the combined experience of field activity with veteran best practices from Stripe’s reconciliation flow. Sellers are welcome to adopt these best practices in a best practice manner.

1. Centralise Data

Organise all your POs, GRNs, invoices, payout files, bank statements, and returns in one digital space where you can reach verification easily on.

2. Match Transactions to Each Line

Check each sale per SKU, match each invoice to GRN, and track returns and damages separately.

3. Look for Hidden Deductions

Review payout reports to see if there were charges for logistics, warehouse fees, penalties, and/or marketing charges that will not be obvious.

4. Reconcile Returns in Detail

Confirm that when stock comes back, it is deducted as appropriate. Confirm the product actually got returned. Be sure to adjust the payouts if appropriate.

5. Use FIFO when under SOR

Be sure to always match the payout against the oldest stock sold before anything else.  This prevents any confusion between the older product sold and what arrived first.

6. Reconcile for Volume Frequently

For high-volume sellers, reconciliation should be weekly. For smaller sellers, reconciliation should be monthly. The longer you wait to reconcile, the larger the error for the seller could be.

7. Bring Issues to the Platform Quickly

Questions or concerns should be brought directly to the platform as soon as possible. The later you wait, the more complicated it will be to return or recover any missing dues.

Real-Life Seller Scenarios

Scenario 1: Balances Discrepancy

Supply: ₹25 lakh. Total expected payout: ₹23 lakh. Total actual payout: ₹21.5 lakh. A reconciliation of what was payable highlighted marketing fees and unadjusted returns totalling ₹1.5 lakh.

Scenario 2: SOR Confusion

Supply: 5,000 litres of milk. Sales: 3,800 litres. Payout only covered 3,500 litres. Reconciliation of the payout found an additional 300 litres lost to returns.

Scenario 3: Stability of Purchase Order

Supply: ₹10 lakh. Payout on day 60: ₹9.2 lakh. Nothing to report. A clear cycle.

How MSEAS Helps Sellers

MS Ecommerce Analysis Services Pvt Ltd (MSEAS) has developed a Quick Commerce Reconciliation Tool. It is used by many brands around the world.

The tool:

• Automates PO and SOR reconciliation;
• Matches invoices, GRNs and payouts in seconds;
• Tracks cleared and pending balances;
• Provides profitability on a SKU-wise basis.
• Flags mismatches for immediate follow-up;
• Ensures GST, TDS, and TCS compliance.

???? Contact: 9818958912

???? Email: beheratapas13@gmail.com

support@msanalysis.in

???? Website: msanalysis.in or msfinance.in

Final Thoughts

Quick Commerce is rapid, competitive, and growing every day. But Quick Commerce also presents a higher risk for sellers than traditional eCommerce.

PO-to-PO is predictable and easier to manage. SOR is the market leader, but it comes with inherent risks. Reconciliation is required, or sellers may miss the opportunity and take a loss.

The solution is easy: reconciliation done regularly, FIFO tracking of inventory, and expert tools from companies like MSEAS reconciliation systems.

In Quick Commerce, speed is not just about delivery time. Speed is everything, especially when it comes to reconciling your payments and securing your profits.

FAQs

1. What is reconciliation in Quick Commerce? 

It involves comparing payments expected from purchase orders, sales, or invoices to the actual payouts from Quick Commerce platforms.

2. Which model is safer: PO or SOR?

The PO-to-PO model is safer. SOR requires more effort to reconcile and track strictly.

3. Why do payouts appear lesser than expected?

Because platforms take out their commissions and logistics costs, and deductions for penalties and unsold stock, before the payouts are made to sellers.

4. How can sellers verify SOR payments?

Sellers should track SOR payments using FIFO and reconcile at least once a week with sales and return reports.

5. Can sellers operate without the SOR model?

Not usually. Platforms prefer the SOR model. The best brands may be able to negotiate PO contracts.

6. What could happen if a seller did not do reconciliation?

Sellers run the risk of revenue leakage and filing their GST incorrectly, and losing insight into cash flow.

7. How often should reconciliation occur?

Depending on volume: weekly for high-volume sellers, monthly for smaller sellers.

8. Is reconciliation less painful with automation?

Yes, agreements such as MSEAS can minimise time spent on reconciliation, take out human error and give a reasonable summary dashboard.

9. How does reconciliation assist with tax filings?

Reconciliation helps ensure invoices, returns and payment receipts all align with GST, TDS and TCS filings.

10. Is Quick Commerce still profitable if a seller has these reconciliation issues?

Yes, if the seller is resolving issues, reconciling regularly, keeping track of their returns and using smart pricing.

Happy Selling

• Finance