eBay

liawri-75 · ‎10-22-2023

I can never figure this out. I sold a shirt for 19.99 and according to Ebay, my net revenue is 10.94. Or is it 15.52? Did EB deduct both the shipping & fees; even though the buyer paid ($7) for shipping? *Confusing*!!

goredrooster · ‎10-23-2023

If you sold the item for $19.99 and the ebay fees were $4.47 the net on sale is $15.52. The cost of shipping label was $4.88. When deducted from net this equals $10.64 Net. However, the buyer paid $7 shipping. If you deduct the actual cost of label from the $7 paid this will give you an additional $2.12 in profit bringing your total net on the sale to $12.76.

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frankenhobbit · ‎10-22-2023

It's 15.52 minus whatever you pay for shipping ($4.55 in this case). The buyer paid you $7 for shipping, which is part of that $15.52. You then buy the label. If you buy it from eBay (not mandatory), they will either deduct it from your available funds, or you can use Paypal. Here, you took it from your funds.

If you had elected to buy the label elsewhere, your available funds would be $15.52. If you had used Paypal, your available funds would have still been $15.52. But in reality, your net for the sale after expenses would be $10.64 as you would have had to pay someone else for the label or your Paypal linked account would be debited $4.88.

Not going to discuss the effects of Sales tax, or the other expenses not captured like packing materials, as those are not germane to the two transactions shown.

mam98031 · ‎10-22-2023

Your Gross Revenue [before deductions] is what the buyer pays you for the product and the shipping.

Ebay only sees fees / costs that run through Ebay, so they can NOT tell you what your actual Net Revenue [after costs] is.

But for Ebay purposes, they take what you received from your buyer for the Product and the shipping, they subtract the Ebay FVFs and the cost of shipping IF you purchased it in Ebay to arrive at your Net Revenue.

But keep in mind that does not take into consideration other legitimate costs you have that for tax purposes you would deduct too.

Some other items that are deductible from what they buyer pays for the product and shipping, is shipping supplies, cost of the product, etc.

I encourage you to read through these links as they will likely help you a lot. Take it slowly so you don't overwhelm yourself. There is no rush. Take your time, digest the info and then come back with any questions you may have.

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

liawri-75 · ‎10-22-2023

So Franken, IYO, it's better to buy postage outside of Ebay? Like Pirateship/PP?

martin2001 · ‎10-22-2023

Can you do a screenshot of the order page? The explanation of the posters got me confused. If the buyer paid extra $7.00 for postage, where did it go? You sold the shirt for $19.99 and buyer paid $7.00 so the total ebay got from the buyer (before deducting the fees etc) was $26.99 (disregarding the sales tax as it is later deducted.) Does your order page say that? Then ebay took $4.47 (fees) so you earned $22.52. Then you paid for the shipping label $4.88 so your net earnings are $17.64.

For example here is one of my orders. I sold an item for $15.21. Buyer paid $4.50 for postage. My total was $19.71 (disregarding the sales tax). Then ebay took $2.60 in fees so my net was $17.11. I do not use ebay labels. If I did, let's say the label would be $3.50, my net would be $13.61.

Applying the same methodology, your net, the second line should be $17.64. SO I am as confused as you may be.

martin2001 · ‎10-22-2023

My brain is not functioning toady, looks like, but how is $7 part of $15.52? $19.99 for the shirt + $7.00 = $26.99 - fee $4.47 does not equal $15.52. What am I missing?

kensgiftshop · ‎10-22-2023

@liawri-75 wrote:
So Franken, IYO, it's better to buy postage outside of Ebay? Like Pirateship/PP?

It doesn't make any difference where you buy your shipping labels, the cost is deducted from your profit.

Have a great day

frankenhobbit · ‎10-22-2023

Some people do, as some small but heavy items can be cheaper, also it apparently keeps tracking history for longer. Neither applies to me so I buy all my labels through eBay. I've not noticed a difference in price for the items I sell and it's click and done. But I do use Pirateship when I am not shipping eBay stuff and can definitely recommend them.

liawri-75 · ‎10-22-2023

Martin, $19.99 is the GROSS.

I'm trying to figure out what is the Net. Is it the $15.52 or the 10.94?

The $19.99 includes the $7shipping.

frankenhobbit · ‎10-22-2023

That 19.99 is the total of the order, including whatever you charged for shipping as well as any sales tax if the buyers state charges it.

The fee is high for that total, which makes me think that you used 'promoted listings' on that item.

Hence why others are asking you to post the order details. It will tell you the breakdown.

lsugoat · ‎10-22-2023

FEEbay factors whatever they can into the % they take from us as a FVF. Its really **bleep** on how they calculate what THEY MAKE.

dbfolks166mt · ‎10-22-2023

My brain is not functioning toady, looks like, but how is $7 part of $15.52? $19.99 for the shirt + $7.00 = $26.99 - fee $4.47 does not equal $15.52. What am I missing?

OP incorrectly stated the shipping the buyer paid was $7. What the buyer actually paid was $4.50 the order total was $20.66. Seller actually paid $4.47 to ship the item so they lost a little bit on the shipping if you factor in the fees that are applied to the shipping cost. They must be giving the buyers the actual discounted rates on the shipping.

dbfolks166mt · ‎10-22-2023

So Franken, IYO, it's better to buy postage outside of Ebay? Like Pirateship/PP?

I have not purchased labels on eBay for a long time. I use Pirate Ship which has the same discounted rates as eBay but also has a couple of shipping classes eBay does not offer most notably priority mail cubic and ground advantage cubic. The also have shipper protection from unilateral charges that UPS is infamous for hitting the seller with when the label is purchased through eBay.

I also pay for those labels with a cash back rewards CC so it further reduces my shipping cost.

katz.paw · ‎10-22-2023

Going by your screenshot:

The buyer paid you $19.99 which includes shipping cost paid.
Ebay fees are $4.47
You paid $4.88 for postage

$19.99 -4.47 -4.48 = $10.64 Your net revenue for the item.

mam98031 · ‎10-22-2023

@lsugoat wrote:
FEEbay factors whatever they can into the % they take from us as a FVF. Its really **bleep** on how they calculate what THEY MAKE.

@lsugoat

No they don't. They charge us exactly the way they explain on the Seller Fee Page. The last time it changed was in August of 2020 when they went to the Simplified Fee. One FVF on the total amount the buyer pays.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

mam98031 • Volunteer Community Member • Buyer/Seller since 1999