The 1099-K from PayPal totals include the cost of shipping the items to buyer and the eBay and PayPal fees. These, I would think, are legitimate business expenses. Where would these expenses be entered on my (form 1040) SCHEDULE C (profit or Loss from business) ??
You may want to contact a tax professional for advice. As this is public community, many PayPal related questions can be answered however, when it comes to tax, financial or legal questions - talk to a pro.
