Why is eBay deducting the shipping fee from my item price when the buyer paid for shipping?

[mathdebate]

I create a listing. I charge for shipping. Buyer pays for the item and is charged the item fee + shipping fee + tax. I should be sent the item fee + shipping fee. I purchase the shipping label. The shipping fee is now deducted from my item fee. The shipping fee the buyer has paid has vanished into thin air. 

ex:     $100 item fee + $20 shipping fee

        = $120 “sent to me” on hold
        - $20 shipping label    
        = $80 payout to me

Why is eBay not sending me the money the buyer paid for shipping? 

Countless threads asking this question and haven’t found a single one that was actually answered. 

[albertabrightalberta]

You are sent the shipping fee, which you then use to purchase the shipping label! 

[titipeo]

As indicated by @albertabrightalberta , you are charging for shipping, you are getting paid for shipping by buyer, but you seem to forget that you are buying the shipping label through eBay, therefore you need to pay for this to eBay so they deduct it. Seems simple and clear. If you where to buy you own shipping label personally, either through PirateShip, or directly through the USPS/UPS/FedEx, you would have to pay out of pocket for that.  

[albertabrightalberta]

Using the numbers from your example, here's the breakdown: 

$100 item price

$20 shipping

Buyer pays $120

You are charged FVF on total amount at 12.9% + $.30 which = $15.78 which is deducted from your proceeds. 

You purchase the $20 shipping label, also deducted from your proceeds. 

Based on these figures, you would net $84.22. 

[lacemaker3 · Accepted solution]

@mathdebate 

You have forgotten about 2 things: sales tax, and eBay fees, which are deducted from your payout. Here's an example:

		amount:	calculated on:
purchase price		$ 100.00
shipping price		$  20.00
subtotal		$ 120.00
sales tax (buyer's rate)	7%	$   8.40	subtotal
total buyer's payment		$ 128.40
variable final value fee	12.9%	$  16.56	total buyer's payment
fixed final value fee	$ 0.30	$   0.30
total eBay fees		$  16.86
shipping label		$  20.00
total deductions from payout		$  36.86
payout sent		$  91.54

[monroe67]

Just wondering if that chart is something that is available on eBay.  

Because it looks very much like a chart I have created for my own use -- for my selling ID, of course.   I created it back when PayPal was still a part of the equation.  I sat down one day having printed out pages from both PayPal and eBay showing details of the transaction and tried to figure it all out for myself.  

It also comes in handy when I sell stuff for a crafting group I belong to.   All they might know is what an item sold for, but not realize how postage, sales tax, and FVFs can affect that bottom line.   (The group allows members who sell on eBay to keep 30% of the profit/payout and 70% donated to the club.)  

[buyselljack2016]

$91.54  - sales tax remitted  $8.40      maybe $83.14 payout ?

[lacemaker3]

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@buyselljack2016 wrote:

$91.54  - sales tax remitted  $8.40      maybe $83.14 payout ?

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@buyselljack2016, thank you! You are exactly right.

I was uneasy about that chart. I was pretty sure I had missed something, but I couldn't see what it was. Here is the corrected chart.

		amount:	calculated on:
purchase price		$ 100.00
shipping price		$   20.00
subtotal		$ 120.00
sales tax (buyer's rate)	7%	$     8.40	subtotal
total buyer's payment		$ 128.40
variable final value fee	12.90%	$   16.56	total buyer's payment
fixed final value fee	$0.30	$     0.30
total eBay fees		$   16.86
sales tax		$     8.40	(sent to buyer's state)
shipping label		$   20.00
total deductions from payout		$   45.26
payout sent		$   83.14

@monroe67, no, that chart is not available on eBay. I made it up myself for this post. I make it in excel, then copy and paste. Sometimes, I can still access the last version I worked on, and then I am less likely to make stupid mistakes like forget to deduct the sales tax. I prefer to use the OP's numbers in the example, when I can.

[riversidecollections]

this is also my question, Ebay is charging my credit card when I charge my customers for shipping so why are they charging my credit card? How can I contact ebay?

[wastingtime101]

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@riversidecollections wrote:

this is also my question, Ebay is charging my credit card when I charge my customers for shipping so why are they charging my credit card? How can I contact ebay?

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@riversidecollections 

Buyer pays eBay item + shipping + sales tax.
eBay takes selling fees on that total amount.
eBay remits sales tax to buyer's state.
eBay sends the balance item + shipping (less fees) to the seller.
Seller uses the funds to buy a shipping label.

eBay gave you the buyer's shipping money after taking out their fees so you can use it to purchase the label. View your transaction details here:
https://www.ebay.com/mes/transactionlist?sh=true

[dryophelia]

@riversidecollections 

You can choose to pay for shipping labels from pending funds. 

The buyer pays the seller for shipping. The seller uses that money to purchase the label. 
Buyers don’t buy the label, they give the money to the seller.