How is water getting in my shed ?

Mine does the same. It is raised above the concrete base and vented. I have sealed inbetween the panels which has improved matters by 70%. But there are still streaks that come in from the top. I'm just accepting that during the winter I keep a dehumidifer in there. It won't keep the dribbles out but it's stopped damp occuring on the back of cabinets etc.
 
Best material to waterproof a shed? - sealskin.
Good luck getting the seal to part with it first, though.
 
It is coming in some other way and not capillary otherwise it would be wet on the floor as well as the raised bit that is adjacent to the outer panels. It has got worse and water is coming down from underneath the potting bench, but above the bench it is dry. The stain you can see is dry and from oil. I have taken a shot of the overhang in the same spot the water is trickling down from inside. It wouldn't be possible for water to get in there. It has been exceptionally wet the last few weeks and the area is very damp with no airflow (unless I open the gate) so I am hoping it will all dry out come Spring/Summer. It's also very cluttered in there and I have been storing logs in the area (it was quite wet before I put them in mind) I shall treat the waterlogged inside with cooking oil when dry to stop it rotting in the future.
 

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It's not from underneath, it's coming from higher up.
Perhaps it's both.

IMG_20260208_174542.jpg - what's that vertical face below the T&G but above the flag? Whatever it is is damp enough for algae to grow on it. It is either the bottom of your shed, or in contact with it, and it looks damp.

IMG_20260208_174758_edit_859851493546919.jpg - the moisture is clearly working its way up that bit of T&G from below.

IMG_20260211_164234.jpg - You've got water clinging to the cladding on the outside. Painted timber is not impermeable forever, it will expand and contract, small cracks in the paint will open, moisture will be let in, etc. Also, think about what happens to the water when it has run down to the bottom of the cladding. It will stay there for a bit and if the underside isn't treated then it will be absorbed into the timber.

If water can get in here then I can see it might run down the inside:

1770918622869.png
 

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