04-30-2024 04:42 PM
Wrapping my brain around seller fees relative to shipping. Ebay collects the shipping fee when my buyer makes purchase: buyer pays for item, sales tax, and shipping expense. I, in turn, purchase a shipping label to send item to buyer. Ebay informs my net proceeds. Actual proceeds that show up as deposit, are my net proceeds MINUS shipping label I purchased. How can ebay collect two times for shipping? Buyer paid... I paid... what's the deal, lucille?
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04-30-2024 05:12 PM
Here's a visual aid that might help you understand better...
The buyer PAID the total sum ($43.17) for your item (item+shipping+sales tax)
ebay deducts the sales tax ($3.29) and remits it to the buyer state for us.
You take the money the buyer paid for shipping, and purchase the appropriate postage to ship your item. You pay for that postage from the proceeds of the TOTAL sales that were originally paid by the buyer. In this sample, the buyer paid me $6.93 for postage (which was included in the TOTAL sale)..
I then used that money to buy a shipping label that costs $6.16 (leaving a little extra for me)
That leaves me with my net of $26.65, which will be a component of my next payout.
04-30-2024 04:54 PM - edited 04-30-2024 04:55 PM
The buyer pays you for the shipping label when they make the purchase. It is included in your Gross payment (Item Price + shipping + Sales Tax)
eBay deducts their Final Value fees and then sends the sales tax to the buyers state.
You purchase the shipping label from the shipping money the buyer paid you in the Gross amount.
What is left is your net that goes to your bank account.
The buyer pays you and then you use that payment to buy the USPS label from eBay.
You are not being charged twice.
04-30-2024 04:54 PM - edited 04-30-2024 04:55 PM
@vintagegreen wrote:Wrapping my brain around seller fees relative to shipping. Ebay collects the shipping fee when my buyer makes purchase: buyer pays for item, sales tax, and shipping expense. I, in turn, purchase a shipping label to send item to buyer. Ebay informs my net proceeds. Actual proceeds that show up as deposit, are my net proceeds MINUS shipping label I purchased. How can ebay collect two times for shipping? Buyer paid... I paid... what's the deal, lucille?
Lucille, eBay gave you the shipping the buyer paid, you pay eBay (or any carrier of your choice) for the shipping label.
04-30-2024 05:12 PM
Here's a visual aid that might help you understand better...
The buyer PAID the total sum ($43.17) for your item (item+shipping+sales tax)
ebay deducts the sales tax ($3.29) and remits it to the buyer state for us.
You take the money the buyer paid for shipping, and purchase the appropriate postage to ship your item. You pay for that postage from the proceeds of the TOTAL sales that were originally paid by the buyer. In this sample, the buyer paid me $6.93 for postage (which was included in the TOTAL sale)..
I then used that money to buy a shipping label that costs $6.16 (leaving a little extra for me)
That leaves me with my net of $26.65, which will be a component of my next payout.
04-30-2024 06:29 PM
thank you all for helping me see again. I lost my way by looking at total Net before shipping removed. The basics became a sudden labyrinth of confusion - I appreciate you gently easing me back to comprehension.
04-30-2024 06:48 PM
I was heartened by your apparent understanding (seemingly rare among some new-ish sellers) when you said:
". . . buyer pays for item . . . and shipping expense. I, in turn, purchase a shipping label to send item to buyer",
but then you asked this, revealing your not-so-accurate understanding:
"How can ebay collect two times for shipping? Buyer paid... I paid... what's the deal, lucille?"
Yes, as you say, eBay does collect two times for shipping.
The First Time: eBay collects shipping cost from the buyer. As you stated, "buyer pays for item and shipping expense." "Buyer paid . . .", meaning that the buyer paid eBay.
The Second Time: eBay collects shipping cost from the seller (you) when (you) the seller buys postage through eBay and prints the mailing label. Again, as you say, "I paid . . . ." YOU paid the US Postal Service through eBay.
Also, as poster Steady2034 wrote:
"The buyer pays you and then you use that payment to buy the USPS label from eBay.
You are not being charged twice."
I believe that if people put a little extra effort into thinking through this process, they will see how it works.
05-06-2024 02:54 PM
I had a similar thing happen. The buyer paid $15.95 to ship a 3 lb 6 oz item. I purchased a shipping label not knowing it was $29.86. No way this was a fair rate. Won't be using ebay shipping labels again. You're better off listing things as free shipping and increasing your sales price. Total scam.
05-07-2024 06:03 AM
@hofn64_0 wrote: .... The buyer paid $15.95 to ship a 3 lb 6 oz item. ....
That's because you set up the listing with a flat $15.95 price for shipping and handling.
If you want to charge the buyer an accurate price for shipping, you have to set up your listing with calculated shipping that is based on the weight and dimensions of your package.
05-07-2024 06:24 AM
curious....where's the scam?
You setup the shipping parameters when you made the listing...
Only YOU can decide what to charge the buyer for the item...
You may want to review your current listings and follow the advice from @nobody*s_perfect or you are going to get another shipping miscalculation....
05-07-2024 02:01 PM
I set up shipping at $15.95. The item sold. When I printed off the shipping label it jumped to $29.50 which I didn't realize till after it was printed. This was a 3 lb 6 oz item in a small box. shipped within the US. This entire package would weigh about the same as a two slice toaster. Maybe you can explain it to me because it's impossible to contact anyone at ebay.
05-07-2024 02:34 PM - edited 05-07-2024 02:35 PM
You do know the definition of 'calculated' shipping, right?
how did you determine a flat rate of $15.95?
What were the final dimensions of the shipping box? Shipping Zones? Something certainly looks amiss for you here....
05-07-2024 03:59 PM
"I set up shipping at $15.95. The item sold. When I printed off the shipping label it jumped to $29.50 which I didn't realize till after it was printed. This was a 3 lb 6 oz item in a small box. shipped within the US. This entire package would weigh about the same as a two slice toaster. Maybe you can explain it to me because it's impossible to contact anyone at ebay."
Sounds like you were guessing at that $15.95 shipping. Did you weigh and measure the pkg with wrappings before you decided on that shipping fee? That would be the only 'scam' if you didnt.