Fees and net payment

[mmpjdp]

I sold a flight suit for $48, shipping was  $12.12 which I paid up front  which was to be added to the sales price that the buyer paid so that I get reimbursed. 

Now Ebays fee is 13.25% which would be $6.38

$48-$6.38 =$41.62 (+$12.12 shipping) = $53.74

I received $39.08

What am I dont understand why I received 39 and should have received 53.74, what am I Missing?

the financial statement has a line:         Orders (Total minus fees)  = $51.20

When the seller buys a shipping label from ebay where is that money deducted from?  Does ebay hold in "escrow" to be paid by the buyer?

[buyselljack2016]

@mmpjdp 

the 13.25% FVF is charged on the entire buyer payment amount including sales tax paid by the buyer, not just on the $48.

edit to add :

Final value fees

We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus a per order fee. For orders $10.00 or less the per order fee is $0.30, for orders over $10.00 the per order fee is $0.40.

The total amount of the sale includes the item price, any handling charges, any shipping costs collected from the buyer (some exceptions apply), sales tax, and any other applicable fees.

[brightlightbookseller]

The buyer paid $53.74 (plus any taxes), you received your cut of that after eBay's fees which are usually 13.5%, though I'm not sure if that category is different.

$53.74 x 13.5% = $46.49

Then, you used the money the buyer paid you to pay the shipping costs:

$46.49 - $12.12 = $34.37

Sounds like you netted a little more than I'd expect, meaning the fees in that category may be lower.

[mtgraves7984]

... what am I Missing?

@mmpjdp 

The cost of the mailing label (you paid for) sometimes trip a seller up. I think the numbers look right. 

[blueduece58]

@mmpjdp 

The total amount of sale is the selling price + shipping + any state sales tax paid.

Item total:           $48.00

Shipping:                $12.12

Sales Tax 8%:         $4.81 (estimated)

Gross Total:         $64.93

eBay FVF:             -$9.00 (13.25 % + .40 fixed fee of the gross total)

Shipping Label: -$12.12

Sales Tax:             -$4.81

Net Total:              $39.00

Did you promote the listing? If you did that would also be deducted from the Net Total.

[buyselljack2016]

$43.81  - the sales tax =  $39 and change

[blueduece58]

@buyselljack2016 

Never was good at math....fixed

[mmpjdp]

Soooo the seller pays sales tax?

[mmpjdp]

okay soooo ebay holds the shipping in "Escrow" until they buyer pays up????

[buyselljack2016]

@mmpjdp 

The buyer pays sales tax.

The seller is charged a "processing" fee on the entire buyer payment

[mtgraves7984]

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@mmpjdp wrote:

Soooo the seller pays sales tax?

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@mmpjdp 

No... the buyer pays the sales tax. eBay collects it and sends it to the proper state's authorities for you.

[buyselljack2016]

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@mmpjdp wrote:

okay soooo ebay holds the shipping in "Escrow" until they buyer pays up????

---

No, the buyer pays eBay's payment processor.

While the payment is processing eBay allows you to use the needed $$$ to buy a label, and deducts that from your payout.

[mtgraves7984]

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@mmpjdp wrote:

okay soooo ebay holds the shipping in "Escrow" until they buyer pays up????

---

@mmpjdp 

No... the buyer pays the shipping up front. It's there for you to use when you purchase your label using 'My funds'.

[buyselljack2016]

There you go 😁  Looked great except for that sales tax that we would all like to forget about 😁

[frankenhobbit]

When you sold the flight suit, the buyer paid item plus tax plus shipping. 

eBay takes their fee (usually 13.25 percent of the TOTAL amount the buyer paid, plus $0.40) as well as the sales tax from what the buyer paid.

What's left goes into your eBay fund. 

You print the label. eBay takes the cost of the label from your fund (unless you specify otherwise and use a credit card or PayPal to pay for the label).

You're now left with your net proceeds in your eBay fund. 

Once any 'holding period' that you may encounter as a new seller has passed, they deposit it in your account.