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Question about paying for shipping

Hello,

 

I am selling an item in a USPS Priority Mail box for $20. The shipping fee is $7.20 for the item. I guess I have to ship it through the Priority Mail option since that is required with USPS boxes. 

 

My question is, is the $7.20 shipping free subtracted from the total amount of money I get from the item I'm selling? Like, will I only get $20 if my item sells?

 

I was thinking that I would get paid the total $27.20, and then when I would ship it at the post office, they would subtract the $7.20 shipping fee from my bank account, which leaves me with only earning $20.

 

Sorry if this is an absurd question, but I'm new to selling and I'm just looking for some help, thanks. 

Message 1 of 13
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Re: Question about paying for shipping

That depends on how you list it.

 

If you list it as $20.00 plus calculated shipping, then your buyer will pay $27.20, you will pay the post office $7.20 and be left with $20.00, minus any fees that eBay and Paypal charge.

 

BUT if you list it as $20.00 with free shipping, then your buyer only pays $20.00. You still have to pay the post office $7.20 and you are then left with $12.80, and again minus any fees that eBay and Paypal charge.

 

"Laissez-faire capitalism (AKA The Great Material Continuum) is the only social system based on the recognition of individual rights and, therefore, the only system that bans force from social relationships." ~ Ayn Rand
Message 2 of 13
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Re: Question about paying for shipping

Don't forget you will be charged a 10% of the total fee on your next EBay bill and you will pay around 3% to Paypal for processing the payment.

 

however if you print your shipping label on eBay you generally pay less than if you pay at the post office

Message 3 of 13
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Re: Question about paying for shipping


@caseyb2012 wrote:

Hello,

 

I am selling an item in a USPS Priority Mail box for $20. The shipping fee is $7.20 for the item. I guess I have to ship it through the Priority Mail option since that is required with USPS boxes. 

 

My question is, is the $7.20 shipping free subtracted from the total amount of money I get from the item I'm selling? Like, will I only get $20 if my item sells?

 

I was thinking that I would get paid the total $27.20, and then when I would ship it at the post office, they would subtract the $7.20 shipping fee from my bank account, which leaves me with only earning $20.

 


Let's say you sell an item domestically for $20 with a $7.20 shipping charge, and they buyer pays you with PayPal.  You then buy a postage label through eBay that costs $7.20 in order to ship it to your buyer. 

 

1)  The item sells

2) eBay then adds $2 to your eBay invoice (10% final value fee on $20 selling price)

3) Buyer sends a $27.20 payment to your PayPal account

4) PayPal deducts their fee of $1.09 (2.9% plus 30 cents) and puts $26.11 in your PayPal account

5) eBay then adds $0.72 to your eBay invoice (10% final value fee on $7.20 shipping cost)

6) You purchase a shipping label on eBay, and pay for it with PayPal

7) PayPal deducts $7.20 from your account, leaving you with $18.91 in your PayPal account

😎 eBay and PayPal both tag your transaction with the USPS tracking number*

  

After all this, you have $18.91 in your PayPal account, and a balance of $2.72 that you will need to settle with eBay on the 15th of the next month. So if you pay your eBay bill the next month with PayPal, you will be left with a net of $16.19 from your transaction. 

 

Keep in mind that if you are a new seller, ther may be a "hold" placed on the money from that transaction in your PayPal until the item is delivered.  So your money may not be available to your straight away. 

 

* if you do not understand why the tracking number is important, you need to read up on "Item Not Received" disputes, and the "eBay Money Back Guarantee", and "Seller Ratings". 

 

Message 4 of 13
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Re: Question about paying for shipping


@caseyb2012 wrote:

Hello,

 

I am selling an item in a USPS Priority Mail box for $20. The shipping fee is $7.20 for the item. I guess I have to ship it through the Priority Mail option since that is required with USPS boxes. 

 

My question is, is the $7.20 shipping free subtracted from the total amount of money I get from the item I'm selling? Like, will I only get $20 if my item sells?

 

I was thinking that I would get paid the total $27.20, and then when I would ship it at the post office, they would subtract the $7.20 shipping fee from my bank account, which leaves me with only earning $20.

 

Sorry if this is an absurd question, but I'm new to selling and I'm just looking for some help, thanks. 


A couple of questions:

What sized box is it?

How big is the item and how much does it weigh?

Where are you getting that $7.20 figure from?

 

You can list your item a few ways:

1) $20 with "free" shipping (20-7.20)

2) $27.20 with "free" shipping (27.20-7.20)

3) $20 with Flat Rate Shipping of $7.20 paid separately (27.20-7.20)

4) $20 with calculated Priority based on weight, size and distance. This will make the rate variable to where your customer is. The buyer will pay based on the published USPS rates. With this option you can't use a Flat Rate Box or envelope (but you CAN use any plain box or non-flat rate Priority Box). Also, you must enter the correct weight and dimensions of the packed item into the listing.

 

When your item sells and your buyer has paid, you can print a DISCOUNTED Priority Mail label on eBay. The postage will be taken from your PayPal account.

 

You attach the label to the box and either drop it at the PO (make sure that they scan it as accepted) or you can schedule a pick up from USPS (again, make sure that they scan it as picked up).

 

When you print the label, make sure that the type of box that you are printing the label for is exactly what you are shipping. If it is a "USPS Priority Mail Small Flat Rate Box", select that box in the label menu. If it is a non-flat rate box, Select "Package/Large Envelope" and Priority Mail ... and make sure that your weight and dimensions are correct.

 

Now ... having said all that ... I suggest you read these  (because it sounds as if you aren't taking any fees into account)

 

http://pages.ebay.com/help/sell/fees.html

 

https://www.paypal.com/us/selfhelp/article/What-are-the-fees-for-PayPal-accounts-FAQ690

 

penguins_dont_fly is a Volunteer Community Mentor
Buying and Selling since 2013

Message 5 of 13
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Re: Question about paying for shipping

 

Listing:

I would get rid of the best offer or at the very least start my price at $29.99 and then have the best offer.   If you start with $20 and list with best offer..... you will likely get you less than $20.00.  

 

Include in your listing, if the disk player will or will not come with batteries.    

 

Shipping:

1.  This item can fit into a padded flat rate envelope.  Go to your post office and ask for a padded flat rate envelope.

 

 2. Get a used cardboard box and cut up some squares to the size of the disk player.   Sandwich the disk player between the layers of cardboards and tape the cardboard like a "t" on both sides all the way around.   Make sure  you have at least 2 or more layers of the cardboard on all sides.  I would use as many cardboard square as the padded flat rate envelope would allow.  The post office suggest 2" inches of padding.   If you can get some free styrofoam sheets, they work even better than cardboard.  

 

3. Slip the cardboard disk player into the padded flat rate envelope.  

 

4.  Buy your label off eBay, so that you get a better postal rate.   

 

If possible, go ahead and pre-package the item, so that it will be ready to go when someone purchases it.  

Message 6 of 13
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Re: Question about paying for shipping

You listed your item a $20 with calculated Priority shipping.  Looks like you selected 2 lbs as the weight.  The buyer will pay $20 plus shipping.  The rate charged to your customer will be based on their location (Zones).   It will vary from $7.20 (to someone close to you) to $12.45 (to someone on the west coast). 

 

The customer will see (and pay) the appropriate rate based on their location.  You won't.  When you look, it shows you the charges to ship to you.  I see a charge of $9.45 (Zone 5).

 

When you get paid, PayPal will take out their fees immediately (2.9% plus .30)

eBay will invoice you for the fees (10% on the entire amount - item + shipping)

 

You don't have to use USPS Priority printed boxes to ship via Priority.  Any box will do - new or a recycled is fine.  You do have to ship Priority if you use a Priority box.

 

Now if you buy your postage at the counter, you will be charged the retail rate which will be exactly what you charged the customer.  If you buy your postage online (eBay or PayPal), you will be charged the commercial rate which has a little discount.  That discount may help cover the fees and packing material.  Shipping isn't postage alone.  It's the costs involved to get the item to your customer.

 

Customers can be price sensitive.  Some feel you should charge exact postage - but that's not really what it ultimately costs.  You can "hide the cost" on the label when you buy it - to help combat that.

 

 

 

Message 7 of 13
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Re: Question about paying for shipping

This item can fit into a padded flat rate envelope.  Go to your post office and ask for a padded flat rate envelope.

 

Most post offices do not have padded FRE's available.

 

They are free from USPS.com.

 

From USPS.com you can also get a priority box which is slightly larger than a small flat rate box, and will fit inside the padded FRE. 

Message 8 of 13
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Re: Question about paying for shipping

Shipping 2 lbs should always use one of the "small FR's" if possible.  They cost about $6.30 to ship, as compared to over $10 for wrong-coast weight shipment of 2 lb.

 

As a side benefit, the listing gets far easier.  Either flat rate shipping, or free shipping, are easy to calculate.  Don't forget the 13% fee charged on the shipping charge.

Message 9 of 13
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Re: Question about paying for shipping

Unless that 2 pound item is exceptionally small and dense, the odds of it even coming close to fitting in a small flat rate box are extremely poor.  Those boxes are barely large enough to hold a single video tape or a pair of DVDs.  In fact, with a few possible exceptions, most items that could fit in a small FRB will likely be light enough to ship First Class for even less.

If it works, sell it. If it works well, sell it for more. If it doesn't work, quadruple the price and sell it as an antique.

-- Ferengi Rule of Acquisition #80
Message 10 of 13
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Re: Question about paying for shipping


In fact, with a few possible exceptions, most items that could fit in a small FRB will likely be light enough to ship First Class for even less.

Things I've stuffed in Padded Flat Rate Envelopes that come to mind:

4 sheets of 12" x 8" plexiglass - 2 pounds

PS3 Power Supply - 3 pounds

PS3 Heat Sink and Fan - 3 pounds

PS3 Bluray Drive - 2 pounds

Box of strip nails for air nailer - 14.5 pounds

15 Tennis balls - 2 pounds

Parallel Data Switch - 2 pounds

Box of 3 Glass Ashtrays - 2 pounds

 

none would have flown FCP, and all would have been ugly as zoned Priority. Once in a while, things go in a SFRB that then goes in a PFRE.

 

innocent

Message 11 of 13
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Re: Question about paying for shipping

Do we get charged an extra fee for using eBay shipping? We used to be charged final value PLUS a charge on the shipping. Thanks in advance! 

Message 12 of 13
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Re: Question about paying for shipping

There is a 10% FVF and a 10% fee on shipping.

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