Why does seller pay shipping when buyer also pays?

[denisej8688]

I have my items listed as buyer pays shipping.  It looks to me that they pay and then I also pay.  So, my item which sells for $22.50 has fees and postage taken out, I end up with just over $13.  I have purchased the shipping label right from eBay.  Why is this not a wash.  I should be ending up with around $19.

[rosszonebricks]

Buyer pays YOU for shipping, and then you actually buy the shipping label.

Fees are taken out of the entire transaction, including shipping and any state taxes.

I'm guessing it was the plate for 22.50 + ~$7.50 shipping.  Assuming 7% sales tax, the total transaction in this example would have been $32.10.

$32.10

-7.50 label

-4.33 eBay fees

-2.10 sales tax.

-0.40 per transaction fee.

= 18.09

Of course variations in shipping location and tax percentage per buyers actual location can change that, but it sounds like your ~$19 is correct.   Did you do Promoted?  Whatever percentage you set for that also would come out of the 32.10.

You can see exactly what happened by going to your orders page and clicking the Order Number.  You will see a page with the full breakdown, similar to:

[wastingtime101]

@denisej8688 

Buyer pays eBay item + shipping + sales tax.
eBay takes selling fees on that total amount.
eBay remits sales tax to buyer's state.
eBay sends the balance item + shipping (less fees) to the seller.
Seller uses the funds to buy a shipping label.

eBay gave you the buyer's shipping money after taking out their fees so you can use it to purchase the label. View your transaction details here:
https://www.ebay.com/mes/transactionlist?sh=true

[kensgiftshop]

The buyer pays you to ship it.

You use that money to pay the carrier to deliver it.

[trainup027]

Wait till you start paying ad fees as well!  😅

If you are uncertain about your profit/loss/earnings, I think it's a good idea to write out the expenses and fees for the entire order for each item you sell a while, to see what you are actually making in profit.  You might end up making more profit on a small sale for an item you got for free, than for a huge item that you paid a lot for and that costs a lot to ship.  Sometimes selling on ebay is more or less just getting your money back (or even less), depending on what you're selling and what you paid for it.  (And that can be fine if you just want to get rid of some stuff around the house.  everybody's situation is different!  Only you can figure out what's worth the time and effort for you.)

Good luck!

[az93]

Buyer pays you so seller can buy a shipping label. It doesn't matter who prints the label, the shipping company gets the money. Sometimes seller fails to collect enough money to ship and then the seller has to pay the difference. 

[caldreamer]

EBAY "selling fees" based on the total amount (purchase price + shipping + sales tax) plus 30 cent handling charge.   When sale is made EBAY immediately deducts "selling fees + shipping".    Shipping money is "held for you" so have "funds available" when you print the label.

 Could be additional fees if you "promoted item" or  extra "1.5% international fees" if your customer has international account or located in foreign country.

However, If you ship through EBAY global EIS they waive the 1.5% international fee but you still have to pay selling fees on international "sales tax".    VAT "sales tax" for 160 foreign counties is about 20%.

[toomuchstuffagain35]

There seem to be quite a few of these 'why is shipping being paid twice' type posts lately.

Maybe an influx of sellers from other sites where the venue charges for & supplies the label?

[ckimodog]

@toomuchstuffagain35 

I don't understand why it's such a mystery & so confusing for some? You charge shipping to the buyer, the buyer pays and you use that money to ship the item.  Easy.  It's not rocket science...lol

[toomuchstuffagain35]

Yes BUT, some venues don't do it the same way which may be where the confusion comes in.

[gone.c-33]

Because in some places, such as Poshmark, the buyer pays shipping to Poshmark and Poshmark sends the seller a prepaid shipping label. The seller never sees the money for shipping. 

[ckimodog]

@gone.c-33 @toomuchstuffagain35 

Thanks very much for clarifying.  I always thought the seller had control of the shipping funds.  Learn something new every day. 😊

[monroe67]

"There seem to be quite a few of these 'why is shipping being paid twice' type posts lately."

I think it shows a lack of ability to think things through.  Perhaps a lack of logic. 
I don't know where that comes from.  Is it a failing of the public school systems?  A flaw in home schooling?
It should really be so simple, if these sellers could just think things through.  

Sure, yes.  "Shipping" is paid twice. 
The difference between those two payments is who/what is paying and who/what is receiving the payment.  

First:  The price of shipping (postage) is first paid by the Buyer to eBay on behalf of the seller.

            eBay makes those dollars available to eBay sellers so that they can buy postage through eBay.  

Second:  The price of shipping (postage) is then paid by the Seller to the carrier (US Postal Service, FedEx, etc.). 

[gone.c-33]

Or, as I posted above, people are used to an entirely different way of handling postage…

[yuzuha]

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@toomuchstuffagain35 wrote:

Yes BUT, some venues don't do it the same way which may be where the confusion comes in.

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Even so, it's still exactly how shipping works when you order anything online as the buyer. If I buy something from Macy's, I pay them whatever the shipping cost is and Macy's is the one who purchases the label for my package, not me.