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What does postage credit mean?

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Do I have to pay for postage or does amazon do that?

If I charge £5 for an paperback book then there is £2.80 postage charge, how much money will I get (less fees)?

Very confused!

If you charge £5 for your book plus there is a £2.80 postage charge then the BUYER pays £7.80.

From the £7.80 - Amazon take their fees - dependant on category - in this example BMVD = 15% + VAT

Leaving you the rest

From the rest you have to pay the postage to send the item, buy the item, package the item AND make a profit.

Use caution though as some books will cost less than £2.80 to post so you will need to lower your ITEM price to remain competitive......and others will cost more than £2.80 so you will have to raise your ITEM price to cover your costs.

Thank you, that makes it much clearer.