Trying to understand the logic related to payouts

[teamstandy]

I'm not understanding eBay's logic on how they handle payouts. For example, I sold an item on Aug 4th. On the Seller Hub Payments tab, all I see is what the buyer paid and eBay's fees (no deduction for shipping).

Fast-forward to Aug. 16. I now see the deduction for the shipping label for the item I sold on the 4th (and I know it's related because it references the order# from the 4th).

Can anyone explain why eBay doesn't just deduct the cost of shipping immediately? The buyer has paid, so why not deduct the fees and the shipping label costs at the same time (rather than deduct shipping label costs a week or more later)? This just seems like it could be managed better.

Thanks,

Andy

[inhawaii]

Do you use/print out a ebay shipping label?

If so, you have two choise to pay for that label.

1) Deduct it from your funds, in which case you'll see the deduction.

2) Pay for it with PayPal, in which case you will not see a deduction.

[dbfolks166mt · Accepted solution]

     This would present a couple of problems. First eBay has no idea what the actual shipping cost is going to be until you purchase and print the label. To hold the payout until you actually purchased and paid for the label would have an adverse impact to those sellers that have protracted handling times and may not actually purchase and print the label for a few days. 

     EBay bases the initial payout on known payment and fees at the time the initial transaction is completed. The FVF is based on the posted shipping cost not the actual shipping cost. I would not want eBay to deduct the shipping cost based on the posted cost given it could differ considerably from the actual. Not do I want them to hold up the payout until  after I actually purchase the postage. 

[aeparts1]

If you ship thru eBay & use UPS or Fedex, you will be billed for the shipping charge when the shipper charges eBay, not when you print a label.  This charge could show up a week after the item ships, or it could be a month after. This is how the shippers do it, not eBay. What you see when you print the label is an estimate, it may or may not be what you end up paying for shipping.

USPS does charge eBay when the label is printed, & that amount is deducted from your account immediately.

[teamstandy]

@inhawaii

I do have it set to deduct from my funds.  

@dbfolks166mt

What you're saying makes sense. I guess I was looking at it from just my perspective. I'm not a power seller by any stretch of the imagination, so I was scratching my head wondering why they can't just deduct from the sale. You make some very good points. Thanks for clearing that up!

@aeparts1

Thanks for that additional info. It all makes sense now. There's always something new to be learned about selling on ebay! 🙂