Multi Vendor Site and how to use Paypal...

[chromenun]

I am setting up a site for Multi Vendors (it's a booklisting/sellling site), and I am confused about how PayPal will work for my sellers.

My site has a shopping cart, and I have it set to use the Sandbox feature, and all seems well.  But what I am wondering about is if a customer uses the PayPal option to buy a book, then the money will be deposited in my account, right??  So I will be charged the fee.  Then if I want to send the money that is owed to the Seller/Vendor that actually owns the book, if I send it by PayPal, won't they in essence be charged another fee for receiving the money??

So that would mean by the time my vendor receives the money, not only will I have paid the fee for processing, but then they will pay another fee for processing/receiving...this would be a DOUBLE WHAMMY for my Sellers...

Or am I missing something here???  I want to make it fair for myself as the site operator, but I also want to be fair to my Sellers/Vendors...I could send their payments via my bank account, but some people are funny about giving their banking information to others...or I could mail a check, but if I have Sellers/Vendors from outside the US that could get expensive...

I hope someone can give me the advice I need on how to proceed...

Thanks,

LS

[skier]

Basically you are the collection point and you use PayPal's Mass Pay feature to pay your vendors. 

Regards,

skier

[chromenun]

Thank you for replying, but that still does not answer my question.  Will I have to pay the 2.9% + 30 cents per transaction to receive/collect the monies, and then turn around and to send the money to my sellers/vendors, will they have to pay the 2.9% (or whatever the fee is to receive the funds) to actually receive the funds from me?

I would have to deduct the first fee from their amount they would be owed, and then if they have to pay again to receive their monies, that would amount to around a 6% fee (when you add the two fees together)

I just want to approach this with my eyes wide open...

Is it possible for each of my vendors to have their own Paypal button so that the monies would go directly to them, bypassing me as the collection point??  Or should I collect their monies, and then send them to them via my checking account (which would not charge any fee for a transfer)?

I have not been able to read anywhere how this really works...and I want to be as upfront and transparent with my sellers/vendors as possible...

Thanks,

LS