Buyer and seller pay for shipping.
I sold an item on eBay where the listing noted buyer pays for shipping. When item sold, buyer did pay for shipping and I also had to buy the shipping label. The issue is, eBay took both the shipping cost from buyer, the shipping cost from me (the seller) and the transaction fee. I netted less than the item sold for. How is that right?
15 comments
house*of*paws
·2 years agoHi @baburgener2012
This appears to be a common misunderstanding.
Sellers are sent the money the buyer has paid eBay for shipping … minus the fees that are deducted.
baburgener2012
OP2 years agoMaybe misunderstanding, if so, I'm now schooled and I thank you.
my transaction:
Sold for $155.00
buyer paid 29.15 for shipping
sales tax. 12.89
Total $197.04
I was just trying to figure out why my net was less than I sold the item for $145.35 and I attributed it to shipping. apologies.
Its all good.
wastingtime101
·2 years agoHey @baburgener2012 . Looks like you get it now, but for future reference I suggest finding transactions and expanding the view details link on this page for a comprehensive breakdown:
https://www.ebay.com/mes/transactionlist?sh=true
retro_entertainment_collectibles
·2 years agoWhattaWiddleWebWovenWhenWeWontWeadWhy.
caldreamer
·2 years agoManaged Payments can be very confusing. When sale is made EBAY immediately deducts "selling fees and shipping money". Money customer paid for shipping "held for you" so you have "pending funds available" to print label. EBAY is NOT getting paid 2 for shipping labels.
namebrandbee
·1 year agoOk so they pay it out and we pay it back?
gwenscupboard
·1 year agoNO! ..
They (eBay) sends you (seller) the money the buyer paid minus the final value fee, sales tax, promotional fee (if any).
THEN you (seller) pays USPS or UPS or FedEx the money you collected from buyer through eBay for the shipping label that you (seller) need to send the package.
I hope that this makes it clear to you.
toomuchstuffagain35
·2 years agoWell of course you netted less than the item sold for. You have ebay's fees and the buyer paid you for the label which you then bought.
albertabrightalberta
·2 years agoThe payment you received included the buyer's payment for shipping. From that payment, you use money to purchase the shipping label.
Buyer pays you, you then pay USPS.
FVF is based on full payment from the buyer -- item price + sales tax (if any) + shipping. If you don't fully increase your prices to allow for fees, you might net less than the selling price of the item.
namebrandbee
·1 year agoBut what exactly is a shipping label? A photo of what the person paid for? So i pay the same price as shipping, approximately, so i can use my own printer and paper, to capture the image of the label?
eburtonlab
·1 year ago@namebrandbee
But what exactly is a shipping label? A photo of what the person paid for? So i pay the same price as shipping, approximately, so i can use my own printer and paper, to capture the image of the label?
The shipping label contains the buyer's shipping address, tracking information, and proof that you have paid for shipping. In order to generate such a label, you must pay in advance.
You do not have to buy a shipping label from eBay; you can make your own label with the with the buyer's address, but then when you go to the shipping service you will have to pay for shipping and tracking separately.
monica-sells
·2 years ago(I highlighted a statement that might help you)
In other words, you sale was not just 155.00
it was 155.00 +XX.XX (Shipping) + XX.XX (Sales Tax)= TOTAL (see your transaction page)
you then paid the shipping from that TOTAL (that was from the buyer through ebay)
eburtonlab
·2 years agoThe buyer pays eBay the item cost, shipping and taxes (if any).
eBay sends the sales tax to the buyer's state, keeps its final value fees and any optional promotional fees, then sends the rest (including the shipping amount) to the seller.
From those proceeds, the seller can pay the shipping service since the seller is the one with a package that needs shipping.
namebrandbee
·1 year agoThen why does the buyer pay for shipping because they need it to be shipped also!? Example, i sold something totaling the buyer 60$ on a 40$ item, i paid for promotion and label, i clear $30. Obviously the buyer paid $20 more then the cost so that's shipping, handling, processing and tax. But that shipping they paid for doesn't ship the item because i had to pay $11 for a label myself, so what am i paying for really? Its my ink and paper. Im paying for me to actually get the picture of the label the person paid for? The promotion robbery makes more sense to me
eburtonlab
·1 year ago@namebrandbee
i sold something totaling the buyer 60$ on a 40$ item, i paid for promotion and label, i clear $30. Obviously the buyer paid $20 more then the cost so that's shipping, handling, processing and tax. But that shipping they paid for doesn't ship the item because i had to pay $11 for a label myself, so what am i paying for really?
You are paying the shipping service to ship the item to the buyer. The shipping service won't ship anything unless someone pays. In this case, that someone is you -- you have a package and you want it to be shipped. No one else has the package; not the buyer, not eBay. Just you, the sender.
So you take a portion of the $20 that your buyer paid to you, and you use that to buy a shipping label to pay the shipper to ship the package.