Shop101 New Supplier Policies

Table of Contents:

  • Terminology and Definitions
  • Shop101 New Seller Policies
    • Marketplace commission
    • Shipping Charges
    • Penalty Policy
  • Type of Cancellations

    • Cancelled by Supplier
    • Cancelled by Buyers/ Resellers
    • Cancelled by Shop101
    • Auto Cancellation due to TAT breach
  • Return to Origin (RTO) due to TAT breach
  • Return charges
  • Compensation for Wrong Product Received in case of Return
  • Penalty on Content Missing
  • Important Points to be Noted


Terminology and Definitions

  1. Transfer price (TP): This is the price at which the Supplier intends to supply products through the Shop101 platform
  2. Wholesale upload price (WS Price): This is the price at which products will be listed on the Shop101 app excluding any invisible/ visible shipping
  3. App price: This is a price that is visible to Buyers/ Resellers inclusive of shipping charges.
  4. Invisible Shipping: This is the shipping cost that is added to the product price and not shown separately to the Buyers
  5. Visible Shipping: This is the Shipping cost which is payable by the Buyer along with the product price
  6. Supplier Gets: This is the total amount that is transferred to the bank account of the Supplier (excluding other adjustments such as penalty etc. as discussed in the ensuing paras.)

    The following formula is applicable here:

    Supplier Gets = Transfer price (-) GST on commission (-) GST on the Shipping invoice (-) TCS @ 1% as per GST Regulations

  7. Turn Around Time (TAT): It is the total time available with a Supplier to ship the products. Default TAT for all Suppliers is T+2 days where T is day ‘0’. 1. However, Sundays and Public holidays are excluded while calculating TAT.

For example:


20th Apr

21 Apr

22 Apr

23 Apr

24 Apr

25 Apr


Order Placement Day


Public Holiday/Sunday

Day of Dispatch









Only the order which was placed on a Friday and T+2 being a national holiday has an exception for dispatch on the next day. To explain it further, If an order was placed on a Friday, then T (date of order placing) +2 days = Sunday. Here, we do not charge a penalty if the order was dispatched on Monday i.e (T+3).

And hence, here Day of Dispatch = Day 2 = 23rd Apr | Day of Delivery = Day 4 = 25th Apr

However, if the order was placed on any other day of the week than Friday then, the standard time for SLA is T+2. If the order is dispatched on the 3rd Day then it is still considered an SLA breach.

8.  RTO(Return to Origin): This means that the product is Returned to Origin and delivered back to the Supplier since Consignee refused to accept delivery of the product. However, if the vendor suspects that the product may be wrong or the packaging is not what they send the product with, then the vendor should mention a comment in the POD when receiving the product and capture an image of the POD. This needs to be sent along with the wrong return claims to the Payment dispute team within 24 hours.

9. RVP(Reverse Pickup): This means the product is Reversed Picked up as the Buyer wants to return the same.

Shop101 New Seller Policies

Shop101 New Supplier Policies 2021-min-shop-101-supplier-policy

1) Marketplace commission:

  • For providing platform services and connecting right Buyers, Shop101 shall charge commission on all delivered orders. No commission is charged on RTO/ RVP and cancelled Orders. Commission is chargeable on Wholesale Upload price at X% which is applicable to respective category/ catalogue as published from time to time.
  • Shop101 reserves the right to change commission % with prior intimations to Suppliers. Shop101 shall issue a weekly commission invoice to Suppliers.

2) Shipping Charges:

Shop 101 applies shipping charges on top of WS price to arrive at App price. The Shop101 system is robust to decide shipping charges to be recovered from Buyers and accordingly add the same to the WS price so that Suppliers does not go out of pocket. Entire shipping charges applied to a product is reduced from Buyer pays while doing a settlement to Suppliers. However, this will not impact their TP as price is appropriately adjusted to take care of shipping charges. Shop101 shall issue a weekly shipping invoice to Suppliers.

3) Penalty Policy:

Shop101 takes all measures to provide an unmatched buying experience to its users and hence we take serious measures to curb practices which disrupt such experience. Shop101 penalises Suppliers for following three reasons:

  • Cancellations
  • RTO due to TAT breach
  • RVP due to quality reasons

3.1.   Cancellations is further divided into following buckets:

a. Cancelled by Supplier:

Supplier is expected to manage & update inventory on Shop101 platform as required. In case, the order is placed when the product is ‘In-Stock’ on the platform and it is realized by the supplier that the product is actually out-of-stock then the supplier needs to cancel the order as soon as possible in order to save the experience of Resellers/ Buyers on the platform. Inability of the Supplier to fulfil the order results into Penalty as under:


Day of Cancellation

 % Penalty of WS Price

Cancellation before 2 days


Cancellation on 3rd day


Cancellation on 4th day


b. Cancelled by Buyers/ Resellers

Due to delay in dispatch by Suppliers, Buyers/ Resellers also cancel the order which we believe as a big disruption in our user experience. Hence, we charge a penalty at the rate of 30% of WS price in those cases.

c. Cancelled by Shop101

Shop101 cancels the orders in cases Buyers are not reachable or we consider the order as potential fraud. We also cancel the order in case Consignee pin code is not serviceable or there is a difficulty in delivering the order. In all such cases, we do not levy any penalty on Suppliers.

d. Auto Cancellation due to TAT breach

In case order is not dispatched and neither cancelled within a period of 4 days, the order is auto cancelled. In such cases, Suppliers are charged a penalty @ 30% of WS price.

3.2. Return to Origin (RTO) due to TAT breach:

  • To support Supplier business, we do not charge any penalty in case the order is RTO. However, there are scenarios where Supplier has dispatched product after TAT in which case, probability of RTO increases and hence Shop101 penalize Suppliers @ flat INR 140 per sub-order quantity in cases where the order is RTO and the same was dispatched after TAT by the Supplier.
  • Penalty Amounts mentioned would attract GST of 18% for which Tax Invoice would be provided and the same can be claimed in the GST Returns.

3.3. Return charges:

  • These returns charges will be applicable on all the returns regardless of any reason.
  • We have categorised the product list as per the weight and return charges will be levied accordingly.
Till 500 gramRs 110 + GST
Above 500 gramRs 150 + GST
  • Previously for return reasons other than product or quality issues penalty was not being charged. Now return charges will be charged for those reasons too.
  • Return charges will be charged on all of the returns with the reason mentioned below:

4) Compensation for Wrong Product Received in case of Return:

  • Though we believe that our Buyers also return the product in as in condition as was received by them. In certain situations where Buyer has misplaced the product, Shop101 shall compensate Suppliers for the same.
  • Amount of compensation in those cases would be 100% of TP.
  • However, we believe that such cases would be few and hence we will cap such cases as – Claims for wrong Returns should not exceed 10% of the Total Returns during the month.
  • The above % will be calculated on a monthly basis.
  • Any wrong product received should be highlighted within 2 days (48 hours) of the receipt of the same with valid proof as per Shop101 policy.
  • It is mandatory for the vendor to share the unpacking video of each product received for us to validate the wrong return claim.
  • If reimbursement for any given order is approved for the reason of “wrong return received” then the penalty amount for the same order will not be reimbursed.
  • We expect you to send claims of each individual order on a separate email. 1 order per email is the protocol and the email should include details such as image of the invoice (.img file, size – 1-5MB) and unpacking video of utmost 1:30 minutes (.mp4 file at 15 MB). These details should be attached to the email and not shared through a cloud/drive system.

5) Penalty on Content Missing:

For any Order where the Wholesaler has dispatched missing items the value of missing item shall be recovered from the wholesaler and the same will be reimbursed to Buyer/ Reseller to prevent the order from getting Returned.

Important Points to be Noted:

  • Listed price of the product on app/website is TP (price given by the wholesaler) + Shop101 markup
  • On receiving an Order, kindly make sure to package and dispatch the Order within 48 hours. In case you fail to do so or cancel the Order for whatever reasons, Shop101 shall penalize you as per the Vendor Guidelines
  • Remember to book Sales on your books (WS price + Shipping) as listed in your payout sheet in the name of Reseller. Alternatively, refer to Announcements section on Seller panel for the same
  • Payments will be released every Friday for all the eligible orders (orders delivered and return window closed) delivered a week prior to the payment date
  • Wrong return reimbursements will be released on the first Friday of every month for the claims approved in the previous month
  • Commission, GST on Commission, GST on Shipping and TCS on all products will be deducted by Shop101
  • TDS reimbursement requests should be submitted on a quarterly basis.
  • Payment sheet, invoices and Sales report are available on WS panel and can be only accessed by the vendor or KAMs.
  • In the payout sheet, the first tab has details of orders delivered during the previous week. The second Tab has Refunds & Deductions. The sum total of Payment Due – Penalties & Deductions + any Refunds due is the amount credited to your account
  • Please highlight any queries w.r.t RTO/RVP Shipment within 45 days of the order date. Post that it will not be possible to escalate it to the courier partners
  • Please highlight any queries w.r.t. payments within 15 days of receiving the payout sheet. Post this, we’ll not be able to resolve any discrepancy.
  • RTO cases where the vendor suspects that the product may be wrong or the packaging is not what they send the product with, then the vendor should mention a comment in the POD when receiving the product and capture an image of the same. This needs to be sent along with the wrong return claims. This also applies if the vendor find that the product’s weight is lighter than expected or the packaging feels empty.
  • Any attempt of contact (verbal or written) from the Suppliers to Resellers or Buyers is chargeable of a penalty amount of Rs.10000.


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