Building Zepo for You

What is ZePOST Logistics Refundable Deposit and How Does it Work?

Just created your online store with Zepo? Or did you sign up for the logistics service offered by us? Then you must be aware of the 100% refundable Logistics Deposit, that you need to pay before you start using the logistics service.

Also, you must have been informed about the Credit Limit Policy – your Total Credits used should be lower than your Logistics Refundable Deposit, to keep your logistics account active.

But what is this deposit? What is this Credit Limit policy all about? Well, let’s tackle those questions in detail here.

1. What is this Credit system that applies to my logistics account?

When you use the Zepo logistics service, 3 parties are involved in the billing procedure – the Courier Company, Zepo and the logistics user.

The Total Credits of your logistics account is the total amount that you owe the logistics company.

Now, here is the math behind the Credits used by you.

Total Credit = (Current Cycle Bills + Pending Payments) – Pending Remittances

And here is what each of the terms mean.

A. Current Cycle Bills

Once you start using the logistics service, you are charged by the courier company for every shipment that you make. This is the billing amount that you have to pay the courier company. Only bills for Non-COD shipments are counted in this.

B. Pending Payments from Previous Cycles

These are the bills from previous billing cycles, that are still unpaid by you.

C. Pending Remittances from Previous Cycles

For every Cash on Delivery (COD) shipment, the courier company collects the order amount from the end customer, on your behalf. This is the remittance amount that the courier company pays you. The pending remittances are the amounts that we have collected from the courier company, but are yet to be remitted to you.

Note: We do not consider bills for COD shipments for the current cycle, as corresponding remittance amount has not been accounted for yet.

2. What is the Logistics Refundable Deposit and how is it related to the Total Credits?

Yes, we were waiting for you to ask that! It is a 100% refundable deposit, that ensures that your net balance is always positive.

To keep your logistics account active, your Logistics Refundable Deposit should be more than your Total Credits, at all times.

If, in case, your Total Credits used exceeds the Refundable Deposit, your logistics account will be temporarily put on hold. It will be active again, as soon as the pending bills are cleared, or the Deposit amount is increased.

3. Can you explain this with an example?

Let us assume 3 different cases.

Understanding Logistics Credit Limit

Understanding Logistics Credit Limit


In Case 1 and Case 2, the Total Credits are lower than the Refundable Deposit. Therefore, in those cases, there will be no change in the logistics account for the logistics client.

However, in Case 3, the Total Credits are more than the Refundable Deposit. In such a case, the logistics account of the client will be temporarily put on hold.

4. How much should I keep my Refundable Deposit as?

The minimum amount that has to be maintained is Rs 2,000. However, the higher the deposit, the easier it will be for you to handle a larger number of orders on your website. In such a case, your account will not be put on hold, even if your logistics billing amount increases anytime.

Also, 1% of your Refundable Deposit will be reimbursed per month (or 12% per year) as discount during settlements. This discount will be applied once every 3 months, which amounts to 3% discount.

For example, suppose your deposit for the month of June, July & August is Rs. 10,000. Then 3% of 10,000, or Rs 300, will be adjusted in your Bill and COD Remittance settlements as discount at the end of August.

So, now that the concepts of the Logistics Deposit and Credit Limit Policy are clear, it’s time for you to rock your sales! Rack up the orders, and send your customers some love.

It’s time to start shipping, people! 😀

Like Love Haha Wow Sad Angry
Previous post

6 Social Media Management Tools Every Small Business Must Use

Next post

10 Things We Wish Were Sold Online in India

Varun K R

Varun K R

Arsenal fan with a keen liking for barley & hops. Realized a little late that engineering was not God's purpose for him in life. Bitten by the startup bug, Varun is now trying to contribute to one of the most happening startups in the country - Zepo!

  • sachin

    what kind of an example is this? do the math…in all the cases the amount is negative and account is active

    • HI Sachin,

      Thanks for pointing this out. We have updated the example.
      – Team Zepo