eBay charging buyer and seller for shipping

[vicman832]

Can someone explain to me what is happening with my transaction? I feel eBay is charging shipping twice.

Item listed for $180

Buyer paid $180 + $28 (shipping) + $6(tax)

180+28+6= $214

I used funds from this transaction to pay for the shipping label (remember they were $214... Shipping label was $28, but eBay deducted these $28 from $180. Now my payout is $152.

eBay took $34 (from buyer) + $28 (from me, the seller) $56+$6(tax)

Why the shipping label wasn't deducted from $208 which had buyer payment without tax???

Is this ok??????

[bill.purvis2012]

If you're going to sell on this platform, you need to understand how it works.

When you sell an item, the buyer pays a total that includes your selling price, shipping YOU charged and the Tax Ebay charges which differs depending on buyer's location.

All of this is your income. Ebay then charges their fees based on the total THEY collect. YES. Fees are charged on total including taxes. 

No one is paying twice.  It's Total in minus fees on total (and any promotions, etc.) minus the postage you actually pay when you run the label. What's left is yours. 

[powell-memorabilia · Accepted solution]

$180 item price + $28 shipping + $6 tax = $214

$214

-$6 taxes

-$28 postage

-$28 final value fees

=$152

[vicman832]

I found the breakdown. Now I understand that here eBay was taking their fee of $30.

In my case the guy that got ripped of was the buyer. The shipping eBay charged them was more than the shipping label I paid for. 

Then taxes were really high. 

I think I'll choose other sites to sell. 

Thanks for the response 

[soh.maryl]

"Then taxes were really high."

If you are referring to state sales taxes, are you aware that those are charged by the individual state where the buyer's purchase is delivered and that eBay has no control over that?

It would appear that you neglected to read about eBay fees before you began selling here.

Best of luck with whatever site you choose, but please make yourself fully aware of the fees before you start selling there.  And your buyers will most likely be charged state sales tax by that venue also.  

[nobody*s_perfect]

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@vicman832 wrote: ...  the guy that got ripped of was the buyer. The shipping eBay charged them was more than the shipping label I paid for. 

Then taxes were really high. 

I think I'll choose other sites to sell. ...

---

The shipping calculator in eBay listings defaults to show the retail postage cost, then sellers get a discount when purchasing postage online through eBay.  You can change your site preferences so that buyers are charged the eBay postage price.  

But many sellers choose to leave the listing's shipping calculator set to retail, so the online discount savings can be used to pay for expenses like packaging materials and fees.  If you charge buyers the online price for postage and then you have to pay 13% of that in fees, you're losing money on postage.

Sales taxes are based on local laws, so you (and your buyers) can't avoid that by changing venues.

[laststopgeneralstore]

You should be charging more than it costs for the label since shipping is more than just the label it's time, boxes, polymailers, tape, labels, storage, fuel etc... If you charge the exact amount that it costs you for the shipping label, you're effectively losing money on every single transaction. This is not immoral as everything thinks it is and most online business's do the exact same thing unless they are big enough to eat the cost's of that like walmart, amazon etc... You can use any other site that you want but you'll get the same result by doing that.

[vicman832]

Thank you all!

This is a Mafia! Good times for living.

[nobody*s_perfect]

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@laststopgeneralstore wrote: ... . This is not immoral as everything thinks it is and most online business's do the exact same thing ...

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eBay certainly doesn't think there's anything wrong with adding a handling fee; if you set up calculated shipping, there's even a specific place on the listing form to add a handling fee.

[soh.maryl]

What does that mean?  

[toomuchstuffagain35]

It means they didn't listen to anything they were shown and ebay are stealing their money (I'm guessing here).

[vicman832]

My confusion came from how the payments were presented. When I was buying the shipping label it said that it was taking the shipping costs out of the item value ($180) and not from what the buyer paid ($214) . It took me a while to find the transaction costs breakdown and see the eBay fees. I understand eBay fees, that's how they make money, but how it is handled is very confusing. 

Again, why would eBay say that the shipping is coming from the item value and not from the total that the buyer paid. 

I've seen this thread several times, it is honestly poorly explained by eBay.

What do you guys think?

[vicman832]

It was joke, but honestly I think eBay still pocketed like 6 dollars from the "shipping costs" in addition to their normal fees. 

Buyer paid more for shipping than what the shipping label cost me. 

[toomuchstuffagain35]

Disregard my response. I misread. (not enough coffee yet)

[fern*wood]

The math works out the same regardless once all deductions are complete. Any postage overage after fees goes to you.