Could someone clarify what exactly a PAyPal gift is? Is it the 'send money to friends/family' option?
Yes - it's under " send money / personal / gift "
If it is the 'buy goods' option i think the seller absorbs the cost - if this is the case, would i have to tell the seller?
Most sellers know that there are fees involved in using PayPal. If they don't ask you to cover them, just PayPal the agreed amount. If they do ask you to cover the fees you'll need the check the applicable percentage and add it to the sum you transfer. Communication is the key. If a seller won't talk to you, buy elsewhere.
I am also guessing from the above that this is the normal option for payment as no one mentioned cheques or bank transfers.
As I said, PayPal is the most common method as it's quick, convenient (once you've set up an account) and quite safe. You can always ask if a seller will accept other means of payment. The various methods have their own advantages and disadvantages.
Calmes dans le demi-jour
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Pénétrons bien notre amour
De ce silence profond.