P&P after fees deducted

[e_mc62]

Hi everyone, I was wondering if someone could help clarify a point about what happens to Post & Packing charges after eBay has calculated their monthly fees. My cousin has been selling lots of his old stuff on eBay, and this month he's been getting a 50% discount on the delivery charge by using Hermes. He never knew when this would end so decided to just charge the basic delivery charge to the customer.

He was talking with me today and can't understand how eBay works it out, as the total fees were charged correctly, around 11%, but there was no extra money in his Paypal account for the remainder of the delivery fees charge.

I've only sold a few things on eBay and not for ages (that's another story... related directly to Paypal itself). Anyway, he says he charged his buyers a total of around £200 for delivery, but the actual cost with the 50% reduction was around £100, but he does not have an extra £100 in his Paypal account.

Does that money go back to the buyer or does eBay keep it? He thinks he should have an extra £100 in his Paypal account but it's just the money from his sales. So what happens to the extra?

Thanks guys.

Edit to correct typos!

[rusticrye]

Tell your cousin that everything he needs to know about selling on Ebay, including what Ebay's (and PayPal's) fees are, is in the Seller Centre. There's even a section there especially for new sellers. He also has the Help pages with their integral search to refer to.

@e_mc62 

[e_mc62]

Thanks.

[pixiesen2012]

I'm very confused

when buyers pay the seller gets all the money, the item price and the P&P paid directly into their paypal account minus paypals fee for processing the payment

if the seller is using ebays postage labels he pays with the money in  his paypal account,

he is then charged the ebay fees for selling the items on a monthly invoice

[e_mc62]

That's what he wants to clarify as he says all that is in his Paypal account is the total from his sales, less the fee's eBay charged. Do Paypal take their fee automatically or monthly too?

[tobiasd4]

Paypal take fees when buyer pays, ebay invoice you monthly.
Ebay are changing all sellers over to their own Managed payments (no more paypal) so when you receive money in bank it will have all fees deducted.
If you have any listing fees, these will still be invoiced monthly.

[e_mc62]

Okay, that's what I suggested, but he thought Paypal charged monthly too. Good news about no more Paypal. I had a bad experience with them that put me off eBay as I couldn't get my money back! So are eBay using a type of Direct Banking?

[tobiasd4]

Ebay & paypal fees are charged on what buyer pays,

e.g. sold price + listed P&P.

So if item sells for £10 & £4.00 P&P, then ebay charge £1.40, paypal 34p.

If seller pays £2.00 for postage makes no difference to ebay.

[e_mc62]

Thanks. I found a ebaysfeescalculator for working out the fee's which includes Paypals too. I've sent the link to him.

[61stephenuk]

He's probably forgetting that Paypal charge 2.9%+30p on the total payment received,this is probably the difference in what he was expecting and what actually arrived in his pp ccount.

eBay then charge 10% on total sale in their monthly invoice.

[e_mc62]

He did say he thought about Paypal but it didn't seem to figure. I've sent him a link for a calculator I found doing a search. I wouldn't have thought they'd get it wrong, but maybe Paypal has already taken their share too.

[pixiesen2012]

paypal take their share straight away, everything else is billed afterwards