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New Seller
Summary: remington_473 is seeking assistance as a new seller confused about various charges on eBay, including transaction fees, shipping costs, and sales tax. mudshark61369 explains that eBay fees are based on the total amount paid by the buyer, including item price, shipping, and taxes, and suggests adjusting pricing strategies accordingly. eburtonlab clarifies that eBay deducts fees from the total payment, remits sales tax to the buyer's state, and advises that the seller is responsible for purchasing the shipping label. mr_lincoln provides more details on the process of buying and using shipping labels through eBay and outlines where selling fees apply, including item price and shipping paid by the buyer.
Hello,
Could anyone give me some assistance with selling. I've tried reading up on this topic because I'm a new seller and am very confused on why I was charged so much for the item I listed. Why am I charged for shipping when the buyer paid for it? Also what are those extra fees for, Transaction fee, Sales Tax (which I thought the buyer paid for). This is very confusing. Does someone have the patience to explain all of this to me? Thank you so very much in advance.
Here's the statement from ebay:
What your buyer paid
Subtotal
$9.00
Shipping
$9.95
Sales tax*
$1.78
Order total**
$20.73
What you earned
Order total
$20.73
eBay collected from buyer
Sales tax
-$1.78
Selling costs
Transaction fees
-$3.22
Shipping label
-$9.95
Order earnings
$5.78
remington_473
OP1 week agoThank you everyone! I appreciate you taking the time to answer my questions.
mr_lincoln
Mentor1 week agoHi @remington_473
-The Buyer pays YOU through eBay to purchase the shipping label. YOU get a discount when you purchase that label through eBay. You print the label out and affix it to the package. YOU take the package to the Post office (or UPS or FedEx depending on what you use) and stand in line to get the Acceptance scan within your Handling time to avoid a late shipping defect on your account.
-You are charged a selling fee on:
The item price it sold for
The paid shipping from the Buyer (unless you offer Free shipping, then the Buyer pays nothing and you buy the label out of your own pocket
The sales tax levied on the total dollar amount (if applicable - 5 states have no sales tax)
-Here is a link to the eBay Help page on Selling fees: Selling fees | eBay
eburtonlab
Mentor1 week agoThe buyer pays eBay the total of the item price, the shipping amount specified by the shipping option chosen by the seller, and any sales tax, if applicable.
eBay calculates and withholds its fee amount based on the total amount the buyer pays, then remits the sales tax amount to the buyer's state, and makes the remaining balance available to the seller (eventually). This includes the amount the buyer paid for shipping.
The seller can pay for the shipping out of the funds the buyer has provided, even before the funds are released, if the seller purchases the shipping label through eBay.
The seller has to be the one to pay for shipping because the seller is the one with a package that needs to be shipped.
mudshark61369
Mentor1 week ago · Edited@remington_473 ,
ebay charges fees on the total of the funds you receive for the item shipping and taxes the buyer paid. How much the percentage ebay takes, depends on the category the item was listed in. The basic fee is 13.5% of the total price.
https://www.google.com/search?client=firefox-b-1-d&q=ebay+fees+by+category
You may want to keep that in mind when setting an item's price or accepting an offer. If you would prefer not to have Best Offer on your listings you can switch from the standard listing tool to the Advanced/Business one where offers are an option. You can decline offers or ignore them for 24 hours when they expire.
FYI. Your no returns policy does not fly in the face of ebay's Money Back Guaranty policy (Link Below) for damaged, not working, other not as described issues. So it is better to have a policy.
https://www.ebay.com/help/policies/ebay-money-back-guarantee-policy/ebay-money-back-guarantee-policy?id=4210