How does Etsy handle shipping charges and label costs in my payout?

Hi! On Etsy, the shipping amount your buyer pays is credited to you as part of the order revenue, and then the shipping label you buy through Etsy shows up as a separate charge (debit) in your Payment account—so if the buyer paid $X for shipping and your label cost $Y, your payout effectively includes the shipping money and then subtracts the label cost (you keep the difference when X > Y).

Here’s exactly where to look to confirm it:

1) Find the buyer’s shipping payment (the “credit”)

• Go to Shop Manager → Finances → Payment account.
• Open the entries for that specific order (you can usually click the order-related line to see details).
• In the order’s breakdown, look under Sales & credits (wording can vary a bit). You should see the order funds broken out—typically including item(s) and shipping (and sometimes other lines like gift wrap, discounts, etc.).
• Note: Sales tax/VAT collected is often shown too, but that portion generally isn’t “yours” the same way—Etsy collects/remits it where required—so don’t expect it to increase your earnings the way item + shipping do.

2) Find the Etsy shipping label cost (the “debit”)

• Still in Finances → Payment account, look for a separate line item labeled something like Shipping label (or similar).
• That label purchase is deducted from your Payment account balance. If you later get a carrier adjustment (for example, USPS says the package was heavier/bigger than entered), you may see an additional label adjustment charge later as a separate entry.

3) Quick way to “math check” that shipping was included correctly
For that order, confirm this flow in your Payment account:

• Credits: item total + shipping charged to buyer (minus any discounts you ran)
• Minus: Etsy fees (transaction/processing fees are commonly calculated on the order total, which can include shipping)
• Minus: shipping label cost (if you bought it on Etsy)
  = what’s left goes into your available balance / deposit

If you tell me what you’re seeing in the Payment account lines (just the labels/sections—no personal info), I can help you map each line to “buyer paid” vs “Etsy deducted” so the payout makes sense.