Order Completion & Payout Cycle Solution Design

This article provides a detailed explanation of the solution design for order completion logic and payout cycles within a platform that doesn't integrate with logistics APIs. We will explore the process from order placement to payout, focusing on buyer-seller interactions and admin-configurable settings. This simplified version covers the essential aspects of ensuring a smooth and transparent transaction process for all parties involved.

1. Order Completion Logic (Without Logistics API)

Since the platform lacks direct integration with logistics APIs, order completion hinges on a mechanism combining seller action and buyer confirmation. This approach ensures that both parties have acknowledged the delivery and receipt of the goods before the order is finalized and the payout cycle begins. This method prioritizes user interaction and confirmation, fostering a sense of trust and accountability within the marketplace.

Flow Description: A Step-by-Step Guide

The order completion process unfolds in a series of carefully orchestrated steps, designed to capture the nuances of real-world transactions. Let's delve into each stage to gain a clearer understanding:

① Seller Marks the Order as Delivered

The process initiates when the seller, having dispatched the item, takes the crucial step of signaling this within the platform. By clicking the [Mark as Delivered] button, the seller sets in motion a series of system actions that propel the order closer to completion. This initial action is a key trigger, setting the stage for subsequent verifications and confirmations.

System Actions:

• Order status → Pending Customer Confirmation: This update immediately informs all stakeholders that the order's status has shifted, and the buyer's confirmation is now the critical next step.
• System sends an email to the buyer requesting confirmation: An automated email is dispatched to the buyer, prompting them to verify receipt of the item. This direct communication ensures the buyer is promptly informed and engaged in the process.

② Buyer Receives Email → Chooses One Option

Upon receiving the email notification, the buyer is presented with two distinct options, each carrying significant implications for the order's trajectory. This decision point underscores the buyer's pivotal role in confirming the successful completion of the transaction.

✔ “I have received the item”

Selecting this option signifies the buyer's satisfaction with the delivery, signaling that the item has been received as expected. This positive affirmation triggers a cascade of actions that finalize the order and initiate the payout process.

• Order status → Completed: The order status is officially updated to 'Completed,' marking the successful conclusion of the transaction.
• System records CompletedAt: A timestamp is recorded, capturing the precise moment of completion. This CompletedAt timestamp serves as the foundation for calculating the payout cycle, ensuring accurate and timely payments.
• Payout countdown begins: With the order marked as complete, the countdown for the seller's payout commences, adhering to the platform's pre-defined payout cycle.

✖ “I have NOT received the item”

Choosing this option indicates a discrepancy, alerting the platform to a potential issue with the delivery. This negative confirmation triggers a different set of actions, designed to facilitate resolution between the buyer and seller. Open communication and negotiation become paramount at this stage.

• Order status → Pending Seller Action: The order status is updated to reflect the need for further action from the seller, highlighting the unresolved delivery issue.
• Buyer and seller negotiate directly (outside the system or via chat): The platform encourages direct communication between the buyer and seller to address the issue. This negotiation may occur through external channels or within the platform's chat system, providing flexibility in resolving the matter.
• Platform does not intervene: To promote autonomy and direct engagement, the platform refrains from intervening in the negotiation process. This hands-off approach empowers buyers and sellers to reach mutually agreeable solutions.

③ After Negotiation → Seller Confirms Resolution

Following negotiation, the seller plays a crucial role in signaling that a resolution has been reached. By clicking the [Mark as Resolved & Confirm Delivery] button, the seller initiates the process of re-engaging the buyer for final confirmation. This action demonstrates the seller's commitment to addressing the buyer's concerns.

System Action:

• Order returns to Pending Customer Confirmation: The order status reverts to 'Pending Customer Confirmation,' signaling that the buyer's verification is once again required.
• System sends a second confirmation email to the buyer: A second email is dispatched to the buyer, prompting them to confirm receipt of the item following the resolution efforts. This repeated confirmation request ensures the buyer has ample opportunity to verify the delivery.

④ Buyer Final Confirmation

The culmination of the order completion process rests on the buyer's final confirmation. This decision point determines whether the order is officially completed or requires further action. The buyer's choice holds significant weight, ensuring the accuracy and fairness of the transaction.

• ✔ Confirms received → Order becomes Completed: If the buyer confirms receipt, the order status is updated to 'Completed,' signifying the successful conclusion of the transaction. The payout cycle then proceeds as planned.
• ✖ Still not received → Returned to Pending Seller Action (loop continues): If the buyer still hasn't received the item, the order status reverts to 'Pending Seller Action,' restarting the negotiation loop. This iterative process ensures that all delivery issues are thoroughly addressed.

The order is only considered Completed when the buyer confirms. This principle underscores the platform's commitment to prioritizing buyer satisfaction and ensuring a reliable transaction process. This confirmation mechanism acts as a safeguard, preventing premature payouts and fostering trust within the marketplace.

2. Order Status Summary

To provide clarity and transparency, the platform employs a range of order statuses, each representing a distinct stage in the transaction lifecycle. These statuses offer real-time insights into the progress of an order, enabling both buyers and sellers to stay informed. Here’s a breakdown of the key order statuses:

These statuses offer a clear and concise overview of each order's journey, from initial shipment to final completion or resolution. The consistent use of these statuses enhances communication and understanding between buyers, sellers, and the platform itself.

3. Payout Cycle (Configurable in Admin)

The platform's payout cycle is a critical component of its financial infrastructure, ensuring sellers receive timely compensation for their completed orders. To accommodate varying business needs and risk management strategies, the payout cycle is designed to be configurable by the platform's administrators. This flexibility allows for optimization based on specific marketplace dynamics and operational requirements.

Payout calculations are anchored to the order’s CompletedAt timestamp, providing a consistent and objective starting point for determining payout eligibility. This timestamp, recorded upon buyer confirmation, ensures that the payout cycle aligns precisely with the successful completion of the transaction.

Admin Configuration Fields

The admin interface provides a dedicated section for managing payout cycle settings, offering granular control over key parameters. Located in Admin → Finance Settings → Payout Cycle Settings, these configuration options empower administrators to tailor the payout process to the platform's unique needs.

1. Payout Rule (T+N)

The core of the payout cycle configuration lies in the T+N rule. This rule dictates that sellers receive their payout N days after the CompletedAt timestamp. This delay serves several crucial purposes, including fraud prevention, dispute resolution, and ensuring sufficient funds availability. The 'N' value represents the number of days in the waiting period and can be adjusted by administrators to balance seller satisfaction with financial security.

• Seller receives payout N days after CompletedAt: This defines the fundamental principle of the payout cycle, linking payout timing directly to the order completion date.
• Default: N = 7: The platform establishes a default waiting period of 7 days, providing a reasonable timeframe for addressing potential issues while minimizing delays for sellers. This default can be modified to suit specific circumstances.

This configurable payout rule offers a powerful mechanism for managing risk and optimizing the platform's financial operations. By adjusting the 'N' value, administrators can fine-tune the payout cycle to align with their strategic objectives.

4. Payout Calculation Example

To illustrate the practical application of the payout cycle, let's consider a concrete example. This scenario will clarify how the CompletedAt timestamp and the T+N rule interact to determine the payout date.

• Order CompletedAt: Jan 5: This sets the reference point for the payout calculation, marking the official completion of the order.
• Rule: T+7: This establishes the waiting period, indicating that the payout will occur 7 days after the CompletedAt date.
• Available for payout: Jan 12: Applying the T+7 rule, the payout becomes available on January 12th, 7 days after the completion date.
• If the platform runs bi-monthly payouts (1st & 15th):: This introduces an additional layer of complexity, as payouts are processed on specific dates within the month. The payout schedule may influence the actual payment date, even if the funds are technically available earlier.
  • → Money is paid out on Jan 15: In this example, the payout is scheduled for January 15th, the next bi-monthly payout date following the availability date. This ensures that payouts are processed efficiently within the platform's operational framework.

This example highlights the interplay between the CompletedAt timestamp, the T+N rule, and the platform's payout schedule. Understanding these dynamics is crucial for both sellers and administrators, ensuring clarity and predictability in the payout process.

In conclusion, this simplified solution design for order completion and payout cycles, particularly in the absence of logistics API integration, emphasizes the importance of clear communication, mutual confirmation, and flexible configuration. By prioritizing these elements, the platform can foster a trustworthy and efficient environment for all users.

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