Positive revenue impact of 3% for a leading D2C home furnishing brand

An interior view of a textile store with shelves stocked with neatly folded fabrics and a display of curtains, alongside a bed with coordinating linens.

Business Context

The company is a leader in the soft furnishing space and sells bedsheets, pillow covers, curtains and similar products. It sells primarily on Amazon, Flipkart and on a few other marketplaces and also through its own website. It operates on a mix of 'Fulfilled by Marketplace' and 'Fulfilled by Merchant' models and delivers orders from its own warehouse, third-party warehouses as well as marketplace warehouses. It has engaged 4 different courier partners to facilitate deliveries of orders that are received on its website and has integrated 5 payment gateways through which the collections are received.

The company has around 400 SKUs and receives more than 10,000 orders a day through the different channels, with an average order value of Rs 1000. Its return rate is 12%.

Problem Statement

The company did not have a certainty that collections against all orders are being received by it accurately and timely. The accounts team was assigned the task of reconciling the transactions across various sets of data, such as marketplace reports, website backend report, accounting system, warehouse report, payment gateway report, courier partner report and bank statement, but due to the following reasons, carrying out the reconciliation manually was a near-impossible task:

1. Large number of SKUs (around 400)

2. Huge volume of transactions (around 10,000 every day)

3. Multiple channels, modes of fulfilment, modes of delivery and modes of payment

4. Multiple fulfilment centres

5. High incidence of returns as well as lost and damaged inventory in fulfilment centres or in transit

6. Complex pricing structure of marketplaces and courier partners


An Expansive warehouse with rows of shelving filled with labeled cardboard boxes
A smiling delivery man handing over a package to a happy woman at her doorstep, with a delivery van in the background

How Reconcify Solved the Problem

Reconcify has fully automated the gathering of data from multiple sources and reconciliation amongst the various data sets at an order level. The reconciliations which at first seemed virtually impossible, now do not require any manual intervention and happen seamlessly every day and a report is generated at the end of the day, showing matching and non-matching transactions.  The charges levied by the marketplaces, courier partners and payment gateways get validated and any over-charging is highlighted.

The company is now also able to track if the products against orders with status return-to-origin, customer returns or replacements are received back in the fulfilment centre and also cases of products lost or damaged at the fulfilment centre or in transit.

The open transactions of one day are carried forward to the next day, as there are timing differences between the orders and settlement by the third parties and the return of inventory to the warehouse.

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How the Company benefited using Reconcify

1. Plugging revenue leakages to the extent of 2.6% as a result of complete control over collections against orders

2. Freeing up of the time of the accounts team by more than 800 man-days per month

3. Reduction in the time taken to close the books every month from 7 days to 4 days due to an instantaneous daily reconciliations

4. Better ability of the company to manage its accounting operations despite scaling up of the business

A neatly stacked pile of fabrics beside an open cardboard box and smaller packages on a table, set against a blue background with light rays	A neatly stacked pile of fabrics beside an open cardboard box and smaller packages on a table, set against a blue background with light rays