What does Flipkart deduct when an order is returned or RTO’d?
When a Flipkart order comes back, the sale amount is taken back, some of the fees on that order can be kept or reversed, and a reverse shipping fee may be added. What applies depends on whether it was a customer return or an RTO, and on the fees on that order’s own line. You see all of it in your Flipkart settlement report, on the lines for that order.
By the MyrrenReco Team · Updated · Checked on
Was it a customer return or an RTO?
- Customer return: the order was delivered, and then the buyer sent it back.
- RTO (return to origin), which Flipkart calls a logistics return: the order was never delivered. The buyer refused it, could not be reached, or the address was wrong, and the courier brought it back.
Your settlement report says which kind each return was. It matters, because the two are not charged the same way, and a customer return carries a higher chance that the product comes back used or damaged.
What happens to the money for the sale?
The sale amount is reversed. If Flipkart had already paid you for the order, that money is taken back from a later payment. So for a returned order, what matters is not one line but all the lines for it put together, and that total can be zero or even below zero.
Which Flipkart fees are kept, and which are reversed?
On a normal sale, Flipkart’s fees (such as commission, the fixed fee and shipping) are deducted from what you are paid. When the order comes back, some of these can be reversed, which means given back to you, and some can be kept. Which ones depends on the fee, the type of return and the rules in force at the time.
Do not assume either way. Read the fee lines on that order in your settlement report: a reversed fee shows as money back on the order, and a kept fee simply stays deducted. Flipkart’s Fees and Commission page in Seller Hub has the current rules for your account.
Flipkart shows its fees before GST, with the GST on those fees as a separate line. If you are GST-registered, the GST on fees can usually be claimed as input tax credit, so look at the fee itself and the GST on it separately.
What is the reverse shipping fee?
Reverse shipping is the charge for bringing the product back from the buyer to you. It usually appears on customer returns, as its own fee on the order’s line, with GST on it shown separately. It is a real cost of the return, on top of the sale you lost.
Is an RTO free on Flipkart?
Not necessarily. What an RTO costs you depends on the fees on that order’s line. Some RTOs cost little or nothing; others carry charges. Read the order’s own lines rather than treating every RTO as free.
Where do I see this in my settlement report?
- Download the payment report from Seller Hub → Reports → Payment Reports → Settled Transactions.
- Find the order by its Order Item ID. One Flipkart order can hold several items, and each is paid and returned separately.
- Look at every line for that item: the sale, its reversal, each fee and whether it was kept or reversed, reverse shipping, and the GST on fees.
- Check next month’s payment report too. Returns and RTOs are often settled in a later cycle than the sale.
What if the product came back damaged or wrong?
Raise a claim with Flipkart through Seller Hub, within the time limit shown there. Record the unboxing of returns on video so you have proof. When a claim is paid, the credit shows on that order’s settlement line, so you can see which claims were paid.
To see what returns and RTO do to your profit per product, use the Flipkart profit calculator. Our returns vs RTO guide explains the difference in more detail.
Questions
Does Flipkart give back its fees when an order is returned?
Some fees can be reversed and some kept, depending on the fee and the type of return. Read the fee lines on that order in your settlement report, and check Flipkart’s Fees and Commission page in Seller Hub for the current rules.
Is an RTO free on Flipkart?
Not necessarily. What an RTO costs depends on the fees on that order’s line, so read the line rather than assuming it is free.
Why does a return show up in a later settlement report?
Orders are often paid, returned or adjusted in a later cycle than the sale. Check the next month’s payment report as well.
Can I get money back for a damaged return?
You can raise a claim with Flipkart through Seller Hub. When it is paid, the credit shows on that order’s settlement line.
Fee and tax rules from: Flipkart Seller Hub — Fees and Commission. Last verified .