Ebay sent the wrong payout to my account which is a big loss. Please explain why

[allyessentials-03]

I started my eBay business in January this year.  I sold my first item at $39.95. The order total was $42.75 inclusive of tax. After all fees were deducted my order  earnings totaled $28.73 of which I believe would be the total payout to my account based on the statement. March 2, 2024 was the due date for payout and I did received an email indicating that "$5.60 was sent to your  bank account".  I am not sure I understand why the incorrect amount would be paid out when in fact I should have received $28.73. 

I would greatly appreciate any assistance in providing an explanation at this time as I am currently at a loss for the item sold. Thanking you in advance.

[soh.maryl]

You do know that, when the buyer lists an item with free shipping, the shipping cost still comes out of the payment that the buyer paid to you, right?  

[stainlessenginecovers]

Are you using 'promotions'? 

[allyessentials-03]

Yes, I am using promotion but that amount was already deducted as ad fee so I don't understand. Is there a specific department or contact person I can get to speak with regarding this issue?

[allyessentials-03]

I didn't know that. I understand why I should be charges for free shipping when I didn't charge my buyer to ship in the first place. I need to talk to someone who manages eBay operations so that I can have a better understanding of what's happening.  As it is right now, I am incurring a loss and this is not good for my business. 

[albertabrightalberta]

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@allyessentials-03 wrote:

I didn't know that. I understand why I should be charges for free shipping when I didn't charge my buyer to ship in the first place. I need to talk to someone who manages eBay operations so that I can have a better understanding of what's happening.  As it is right now, I am incurring a loss and this is not good for my business. 

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Free shipping means that the buyer doesn't pay separately for shipping. But you (as seller) are expected to add the shipping cost into the price of the item since you have to purchase the label to ship the item.

For example, if the item price is $50 and shipping costs $10, you would charge $60 (plus any handling fee you add to cover your fees) for the item. 

[gator08041971]

Maybe I can help break it down.

Free shipping, means you are offering free shipping to the buyer.  However you still need to pay for it.

You have two choices:

You can either list the item and include a shipping cost that is calculated for the buyer, and they pay that on top of the item sale price.

Or you factor in the cost of shipping when setting a price on the item and have free shipping listed.  Either way, shipping is still part of the cost, it is not free to you.

I have moved a lot of my items to free shipping with returns, and factored in shipping with my prices.

You also need to keep in mind, the buyer should be seeing a retail price, and you would get an ebay discounted price when using calculated shipping for the buyer to pay.  (ebay charges the buyer a retail rate, but you get a discounted cost. This can help offset the fees/packaging materials a bit)

Also, make sure your packaging information is as accurate as you can when you list your item, so the shipping is calculated correctly, and you don't undercharge the buyer and short yourself, if using that.  You can also use the ebay shipping calculator to help gain a sense of what costs may be when shipped to further places from you.

You can find that here:

https://www.ebay.com/shp/Calculator

[steady2304]

What percentage did you use for promoted listings?

[wastingtime101]

"Free shipping" means free to the buyer, seller pays. This message is clear on the listing form on both the app and the website last time I checked.

For a thorough review of your financials @allyessentials-03 view this page along with details for each transaction:

https://www.ebay.com/mes/transactionlist?sh=true

I suggest viewing on the web and not the app for the most clear view.

[stephenmorgan]

If you look at your Order Details the following block of information is in the report and explains how the money was distributed.

[allyessentials-03]

I do not purchase label from EBay. I simply ship my item and then provide eBay with proof that I shipped and delivered. After which I am expecting payment for earnings total.  There should not have been a charge for shipping when I did not ship from EBay so I am not understanding. I am at a huge lost for something I should have earned $28.73 from and end up earning only $5.60. This doesn't make any sense. 

[allyessentials-03]

Thank you for this information 

[allyessentials-03]

I do not use eBay shipping labels so I still not understanding why I am charged for shipping from EBay. They sent the statement and my earning amount is $28.73. Nothing shows a breakdown for why I received a $5.60 payout. I don't understand why I have to face this huge loss

[kensgiftshop]

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@allyessentials-03 wrote:

I do not purchase label from EBay. I simply ship my item and then provide eBay with proof that I shipped and delivered. After which I am expecting payment for earnings total.  There should not have been a charge for shipping when I did not ship from EBay so I am not understanding. I am at a huge lost for something I should have earned $28.73 from and end up earning only $5.60. This doesn't make any sense. 

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If you offer free shipping and didn't buy a shipping label through Ebay, there is no charge on the shipping.

Dropshipping, there isn't going to be much profit, when there's hundreds of other seller dropshipping the same items and some at half what your asking.

[dryophelia]

@allyessentials-03 

Buying your labels through eBay (and a few other online options) allows you to pay a commercial rate. Paying at the retail counter is more expensive. 

If you weren’t charging your buyer for shipping, who did you think would cover that?