Shipping cost vs Shipping Label cost?

[tinkertailorbidderseller]

Hi! I just sold my first item on eBay. I set the shipping to be paid by the customer, and they were charged and paid... but then I was charged for creating a shipping label? I'm confused on shipping costs lol.

I thought the shipping label was the shipping. You pay up-front for the cost of the shipping, and then the label is printed to show that you did pay, and to help the package get physically routed through the supply chain.

Where does each cost come in? I shipped with USPS, but made the label through eBay. I thought that was just a convenience thing eBay offered- did I just pay for something I could have done for free at USPS?

What's the difference between paying for shipping and paying for a shipping label?

[buyselljack2016 · Accepted solution]

USPS does not offer "free" shipping.

Buyer pays YOU.

YOU pay for the label.

[tinkertailorbidderseller]

Of course they don't offer free shipping, I meant they'd print the label for free. But I think I see my misunderstanding now.

I assumed that ebay took the shipping money from the seller- that I never saw it- and gave me the label for "free" (ie, already paid for by the seller). I didn't realize ebay actually gives you the money they charged from the buyer, and then you give it back to ebay. I was worried when I saw I was charged- I thought ebay was taking the shipping cost from both the seller and I lol. They used the term "shipping" for the buyer and the term "shipping label" for me. It looked like two separate things.

So what actually happens is, ebay charges the buyer, includes that in the payout, and then you can use it to pay for the shipping through ebay?

edit: oh! it just clicked for me haha- "buyer pays YOU, YOU pay for the label" Thank you!

[buyselljack2016]

That's it. Seems that you have it now.

There are some sites that a "buyer" pays the site for the shipping, but not how eBay works.

[tinkertailorbidderseller]

Excellent to know, thanks!

[a_c_green]

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@tinkertailorbidderseller wrote:

Of course they don't offer free shipping, I meant they'd print the label for free. But I think I see my misunderstanding now.

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Well, when you purchase your label through eBay (you can pay for it either with the buyer's funds or with your own funding source) you have the option of printing the label directly to your own home printer, or receiving a QR code that the post office will scan from your phone in order to print the label in the post office.

That is, you are still purchasing the label yourself, but if you don't have a printer at home, you can bring the QR code in to the post office and have them scan it to their printer instead.

[redrobin11261]

Congratulations on your first eBay sale. eBay requires the buyer to pay you for shipping so that it can calculate your fees based on the total amount of your sale (which includes the shipping the buyer paid you). I have yet to commit to opening an eBay store, but it would be wise as sales increase, as I was told the fees are significantly lower.

[aproudparent2010]

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@tinkertailorbidderseller wrote:

Hi! I just sold my first item on eBay. I set the shipping to be paid by the customer, and they were charged and paid... but then I was charged for creating a shipping label? I'm confused on shipping costs lol.

I thought the shipping label was the shipping. You pay up-front for the cost of the shipping, and then the label is printed to show that you did pay, and to help the package get physically routed through the supply chain.

Where does each cost come in? I shipped with USPS, but made the label through eBay. I thought that was just a convenience thing eBay offered- did I just pay for something I could have done for free at USPS?

What's the difference between paying for shipping and paying for a shipping label?

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Your buyer pays you shipping and you use what they paid to pay for the label.