Shipping and handling disconnect between PayPal and eBay?

[Rezzify]

So I just recently sold an item where the customer is responsible for the cost of shipping and handling. What I am confused about is why would PayPal then deduct the cost of shipping and handling from the amount of money which then makes me responsible for shipping and handling? 

So now I am going to be paying the shipping and handling for the product and PayPal is going to keep the money he paid on top of the product cost? 

[sharpiemarker · Accepted solution]

@Rezzify 

Never known PayPal to just deduct the shipping/handling costs received upon an incoming payment, only their PayPal fee. If anything, eBay or PayPal would hold the entire payment should it meet the following criteria:

https://www.paypal.com/us/smarthelp/article/why-is-my-payment-on-hold-or-unavailable-faq1987

https://pages.ebay.com/seller-center/service-and-payments/funds-availability.html

PayPal and eBay have been separate companies for over 5 years. PayPal/eBay independently does these holds to ensure seller develop best practices and become a reliable account:

"Seller Best Practices
Some best practices to follow are:

• Ship promptly and give your customers valid tracking information through PayPal, so they can keep tabs on their purchases and know when to expect delivery
• Communicate early and often with your buyers and let them know about any changes, delays, or other important information
• Monitor your buyer complaint rates regularly and try to keep complaint rates below 1% of your sales.
• Avoid long refund times, which can lead to complaints from unsatisfied customers.

A customer who receives prompt service, accurate order fulfillment, and speedy billing is a customer who will be less likely to file complaints or make returns in the future – and more likely to buy from you again."

Besides, you should have some capital on hand for expenses, to keep your operation afloat; have to invest money in order to make money.

If you are experiencing delayed funds availability, here are some shipping tips that may help you get your payment sooner:

• Add tracking information: If you provide tracking information from one of our supported carriers in the transaction details page, your payment should be available 1 day after we can confirm the delivery date. 
• No Shipping Info: If your item doesn't need to be shipped (e-books, piano lessons, etc.), mark the order as Processed and provide the required details.
• Buyer confirmation: A buyer will receive a notification email once you've uploaded the tracking number. When your buyer confirms they've received the item, the payment will be released immediately.

(These options may not be available for some countries):

Seller/Recipient: To add tracking information:

1. Click Activity at the top of the page.

2. Find and click the original payment for the item or service.

3. Click Add Tracking Info.

4. Select an Order Status: Processed or Shipped with or without tracking info.

Buyer/Sender: To confirm you've received an item:

1. Go to Activity.
2. Find and click the original payment for the item.
3. Click Confirm receipt.
4. Click Yes to confirm that you received the order.

Note: Not all purchases require receipt confirmation.

If buyer/sender does not confirm receipt, you may have to wait up to 21 days for PayPal to release funds.