In the usual circumstances, when there is a sale of your item, we will pay you the selling price less the agreed commission.
Hence, when we deduct from your monthly payout the amount of the items we have returned to you, we only deduct the portion that we pay you in the usual circumstances (selling price less commission).
We apply the commission to this item, just to avoid charging your more.
Here a simplified example to explain further the concept:
- A customer purchases an item for SGD 100 from you
- The agreed commission is 35%
- The amount paid to you for this undelivered item would have been SGD 65 from RedMart
- However, the item did not reach the customer and will be returned to you (returned item) in good condition
- Since we returned this item to you, the amount we deduct from you should just be SGD 65
Should we not apply the commission, we would have deducted SGD 100 from your payout an amount which is higher than what would've been transferred to you.