eBay Math

[auwo_58]

Can anyone explain eBay math to me?

I have sold 3 items

Items #1 & #2 have the payout listed as $78.19, and $72.76, for a total of $ 150.95, but the amount eBay sent to me is only $125.97. 

Item #3 has the payout listed as $68.10, which is the amount that seems to be sending to my bank, but I haven't gotten it yet.

I don't get it.

[soh.maryl]

ALL buyers really should read up on the final value fees, preferably before they begin their selling careers.

eBay's Final Value Fee that is charged to the buyer is calculated on (1) the item price; (2) the shipping cost; and (3) the state sales tax, if applicable.  I believe the print out that you see in your information shows the details of all charges. 

[krazzykats]

Sales tax paid by the buyer isn't sent to you.  eBay also deducts their part.

[auwo_58]

Well of course not.  But isn't the Payout Amount eBay calculates the amount I should receive after all the fees, shipping, taxes and whatever else is involved?

[krazzykats]

No, you receive the monies for shipping.  eBay calculates their fees on the entire sale as Mary stated in #2  above.  Then you receive monies minus the sales tax and eBay fees.

Selling fees | eBay

[lacemaker3]

@auwo_58 

As others have mentioned the eBay fees are based on the buyer's total payment, including shipping and sales tax. However, the sales tax is a pass-through. eBay deducts their fees and the sales tax, to come up with the payout.

Depending on how and when you pay for the shipping label, there can be other deductions as well. If you pay for the shipping label from your "available funds", and the shipping is charged to your account before your payout is sent, then the cost of shipping will be deducted from the payout as well. Or, it will be billed to your payments method, or subtracted from available funds received for a later transaction.

Assuming that you used your first 3 sales as the example, in the order they were sold, here is how the fees were calculated for those transactions. You can subtract the cost the shipping labels yourself, if needed.

PAYMENT:		#1		#2		#3	calculated on:  (comments)
purchase price		$   81.00		$   74.00		$   70.05
shipping cost		$   10.15		$   10.70		$     9.45
subtotal		$   91.15		$   84.70		$   79.50
sales tax	7.7%	$     7.02	6.5%	$     5.51	8.2%	$     6.52	subtotal  (at buyer's rate)
total payment		$   98.17		$   90.21		$   86.02
FEES & DEDUCTIONS:
variable final value fee	12.9%	$   12.66		$   11.64		$   11.10	total payment
fixed final value fee	$  .30	$     0.30		$     0.30		$     0.30
total eBay fees		$   12.96		$   11.94		$   11.40
sales tax		$     7.02		$     5.51		$     6.52	(sent to buyer's state)
shipping label		$          -		$          -		$          -	(if purchased with available funds)
total deductions		$   19.98		$   17.44		$   17.92	(total eBay fees + sales tax + shipping label)
PAYOUT:
payout sent		$   78.19		$   72.76		$   68.10	(total payment - total deductions)

[monica-sells]

Items #1 & #2 have the payout listed as $78.19, and $72.76, for a total of $ 150.95, but the amount eBay sent to me is only $125.97. 

Looks like your shipping label payments to USPS (or whoever shipped) were correctly deducted from your 'pending' or 'available' funds.....

Item #3 has the payout listed as $68.10, which is the amount that seems to be sending to my bank, but I haven't gotten it yet.

This is probably sitting in your available funds....the next step will be either "payout" or "on hold"

refer to lacemaker's post for details

[asset_liquidators]

Did you have any sales before these three? If so, there could be a deduction in the current payout due to a previous shipping label (Fedex or UPS) that had not yet been billed since those carriers don't bill until after delivery.

[monica-sells]

Don't forget...you can always see 'more details' from almost any screen

https://www.ebay.com/sh/fin/payouts

Click the Payout ID for a breakdown of funds sent....

this page shows all current operations/status

https://www.ebay.com/sh/fin/transactions

details all the way to the right "View" for each transaction

remember, the payouts don't coincide with each transaction...there could be multiple transactions in a payout

[auwo_58]

So as it turns out, eBay deducted the amount I paid for shipping items #1 thru #3 on my first payout, which is why it was so much less than I expected. 

So to be clear, I'm not so much complaining about eBay's fees (although I'd argue there is a lot to complain about), as much as the eBay's inability to make clear where the money is coming from, and where it goes.  It seems silly that there isn't ONE PAGE for each item sold, including all income from buyers, taxes, fees, and shipping costs to seller. The Net Proceeds  listed here should include ALL taxes, fees, AND shipping costs so sellers have a much clearer understanding of what we will be receiving. 

eBay does its community a huge disservice by not making this info available in one place, instead of forcing you into clicking thru several pages to find all this information, which, IMHO, eBay does a good job of purposely making hard to find.

[monroe67]

"Can anyone explain eBay math to me?

I have sold 3 items.  Items #1 & #2 have the payout listed as $78.19, and $72.76, for a total of $ 150.95, but the amount eBay sent to me is only $125.97. 

Item #3 has the payout listed as $68.10, which is the amount that seems to be sending to my bank, but I haven't gotten it yet.

I don't get it."

In order to get an accurate explanation, you would have to provide a couple details.   "Lacemaker" has developed a helpful chart but it has to include assumptions because your original post omitted key info.

Like:  Did the items sell to states with sales tax?
How much was the sales tax percentage?
Is the item itself taxable?  
Did your listings include free shipping or was the buyer required to pay shipping costs?
If the buyer paid the shipping cost, is shipping subject to sales tax in the state where the item was sent?  
Did your listing include special fees for bold type or subtitles or reserve fees on an auction?
Did you charge a handling fee?
Was the item sold to an international buyer with a shipping address in the USA?  This last one is not too common, but it does trip up some sellers from time to time. 

Not that I need to know these details, but the point is this: there are many variables that could apply to each and every eBay sale.  It is almost impossible for anybody else to figure out what you "should" get from a $78.19 sale, without having more info.  

[monica-sells]

"...The Net Proceeds  listed here should include ALL taxes, fees, AND shipping costs so sellers have a much clearer understanding of what we will be receiving. ..."

Can't do it that way. Not all shipping is paid for or initiated on ebay. It has to be incremental and compartmentalized.

I think if you view "Order Details" it has everything affiliated with that order on that detailed page. (in my case it does not have shipping, but it has fees, pl, and other related costs to that order.....) sales tax totals are a 'pass-through" and not an issue here....

[auwo_58]

Agreed that not all shipping is paid thru eBay... but when it IS... there is no reason why it can't show up on a single page for each item sold.

[blingfling123]

@auwo_58 

" The Net Proceeds  listed here should include ALL taxes, fees, AND shipping costs so sellers have a much clearer understanding of what we will be receiving. "

There are many things in play here, from the timing of your payouts to when you ship and how you ship. 

You can have a purchase on day one and have a payout on day two but not ship for a few more days. 
You can have the same happen over year end (that is always fun when reconciling your 1099). 

Shipping is not always purchased through eBay, so they have no ability to track that either. 

Some shipping purchased through eBay like UPS and FedEx are not billed to you until eBay is billed by the carrier and that can be weeks in the future. 

eBay reports the activity as it happens on the payout page. 

You shipping charges are reflected when you purchase for USPS on the date you purchase it or are billed for it in the future with the other carriers. 

It is not eBay's job to track your expenses, that is yours as a seller.  If you are not doing so, you might want to start now so that you have your ducks in a row come tax time and are getting all the deductions you are entitled to. 

[fern*wood]

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@auwo_58 wrote:

eBay does its community a huge disservice by not making this info available in one place, instead of forcing you into clicking thru several pages to find all this information, which, IMHO, eBay does a good job of purposely making hard to find.

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Clicking is very popular with ebay.  Almost everything involves using the ole mouse repeatedly.  In fairness on this one, though, at the time ebay shows the fees and other info they do not know how much your postage will be until you actually print the label and then it gets deducted.   Keep an eye on your financial summary which shows everything as it comes in.