Do you know how long it takes for eBay to pay you after you make a sale?
If you are a new or experienced seller on eBay, you might have wondered about this at some point.
After all, getting paid is one of the most important aspects of running an online business.
eBay has recently changed its payment system to make it easier and faster for sellers to receive their money.
Instead of third-party payment services, eBay manages payments for most sellers directly.
This means buyers have more payment options, such as credit cards, debit cards, Apple Pay, and Google Pay. Sellers can also get their payouts directly to their bank or Payoneer account.
In this article, you’ll learn everything you need to know about eBay’s payment system.
We’ll show you how eBay confirms the buyer’s payment and sends the payout to your account.
You’ll also learn how eBay’s payment system works and how to optimize your cash flow and business performance.
So let’s get started!
How Does eBay Pay Sellers?
One of the most significant changes eBay has introduced with its managed payments system is how it pays sellers.
eBay now handles the payment process for most sellers directly. This means you don’t need a separate PayPal account or pay any PayPal fees to sell on eBay.
Here are some benefits of using eBay’s managed payments system:
You offer more payment options to your buyers.
These include:
- Credit cards
- Debit cards
- Apple Pay
- Google Pay
You have all your selling tools and reports in one place
You simplify your tax obligations through eBay’s tax reports and invoices.
So, how does this new system work exactly? And what are the steps involved in getting paid by eBay?
Here is a brief overview of how eBay pays sellers:
Step 1: Confirming the buyer’s payment
- When a buyer purchases your item, eBay will confirm their payment and notify you via email or the eBay app
- You can also check the payment status in the Sold section of My eBay or the Payments tab in Seller Hub.
- You don’t need to do anything else at this stage. You can take the time to prepare your item for shipping.
Step 2: Initiating the payout to your bank account or Payoneer account
- After confirming the buyer’s payment, eBay will initiate the payout to your bank or Payoneer account.
- You can choose how often you want to receive your payouts. It can be daily, weekly, biweekly, or monthly.
- You can also request an on-demand payout at any time as long as you have a minimum of $10 available.
Step 3: Receive your payout
- Depending on your payout option and your bank’s processing time, it may take up to two business days for you to receive your payout.
- You can track the status of your payout in the Payments tab in Seller Hub.
- You will also receive an email notification from eBay when your payout is successful.
eBay’s payment system makes it easy for you to get paid for your sales.
You don’t have to worry about managing multiple payment methods, paying extra fees, or waiting for an extended period.
All you need to do is sell your items and let eBay handle the rest.
eBay protects sellers from unauthorized transactions, chargebacks, and claims. You can still use PayPal as a payment option for your buyers, but you will receive your payouts from eBay directly.
Sellers need to update their bank or Payoneer account information. This will enable you to ensure timely receipt of payouts.
Does eBay Take Money From Sales?
The answer is yes; eBay does deduct some fees and costs from your sales before sending you the payout.
However, rest assured that these fees are transparently disclosed and form part of your agreement with eBay when you sign up for its managed payments system.
Here are the types of fees and costs that eBay may charge you from your sales:
Final value fee
- It is calculated as 12.8% of the total amount of the sale, including the item price, shipping, and taxes.
- The percentage varies depending on the category of the item, your store subscription level, and whether you offer free shipping or not.
Insertion fee
- This is the fee that eBay charges you for listing your item on its platform.
- It is usually $0.35 per listing. However, sellers can get some free listings per month depending on their store subscription level.
Promoted listings fee
- This is what eBay charges you for boosting your items’ visibility on its platform.
- It is optional and only applies if you choose to use the promoted listings feature.
- It is calculated as a percentage of the item's final sale price, which you can set yourself when you create the promotion.
Listing upgrades fee
- This is the fee that eBay charges you for adding extra features to your listing. The features may include subtitles, bold titles, and larger pictures.
- It is optional and only applies if you choose to use any of the extra features.
- It is a fixed amount per listing, which varies depending on the feature and the category of the item.
Store subscription fee
- This is what eBay charges you for having a store on its platform.
- It is optional and only applies if you choose to subscribe to one of the store levels. They are Starter, Basic, Premium, Anchor, or Enterprise.
- It is a monthly fee that gives you access to various benefits, such as lower final value fees, more free listings, and exclusive tools.
Payment processing fee
- This is what eBay deducts from sellers when processing payments from buyers on its platform.
- It is a fixed percentage of the total amount of the sale plus a fixed amount per transaction.
- The percentage and the amount vary depending on the currency and location of the buyer and seller.
These fees are often based on the following:
- Item category
- Listing format
- The final value of the sale
Here’s a tip for you: Before listing your items, you can use eBay’s fee calculator for fee estimation.
As you can see, eBay’s fees and costs are transparent and reasonable. They are designed to cover the costs of running and maintaining the platform.
They also help in providing you with various services and benefits. You can check your fee details and invoices in the Payments tab in Seller Hub.
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By analyzing your payout reports, you can keep track of your sales, fees, and earnings.
As such, eBay makes it easy for you to access your payout information in the Payments tab. This is where you can find all the information on your transactions, payouts, and fees.
Here are some of the sections and features of the Payments tab that you should know:
Payouts overview
- Here you can see a summary of your payouts. This includes the total amount, the number of transactions, and the payout status.
- You can also see a graph that shows your payout trends over a certain period.
- You can filter your payouts by date range, currency, or status.
Transactions
- This section has a list of all your transactions, including sales, refunds, cancellations, and adjustments.
- You can also see the details of each transaction, like the item name, buyer name, payment method, and fee.
- You get to filter your transactions by date range, currency, status, or type.
Reports
- This is where you can download various reports that help you manage your payments and business performance.
- You can download reports such as transaction reports, fee reports, and tax reports.
- You can also choose the format and frequency of your report download.
Settings
- This is where you can manage your payment settings, such as your bank or Payoneer account, the payout schedule, and tax information.
- You can also update your contact information and preferences here.
Help
- This is where you can find answers to common questions and issues related to payments on eBay.
- You can also contact eBay’s customer service for further assistance.
The Payments tab in Seller Hub is a powerful tool. It helps you see and manage your eBay payout. You can use it to monitor your cash flow and business performance. You can also request an on-demand payout at any time if you need some extra cash.
A Quick Recap
That’s it! eBay finances its operations through the revenues it collects from the fees imposed on the service users.
These fees are not unpredictable as they are part of the agreement under managed payment systems.
eBay offers you the flexibility to choose when you receive payments. It could be daily, weekly, biweekly, or monthly.
You could also get payment on-demand basis. The time it takes for you to receive your payout depends on your payment option and the bank’s processing time.
On average, the payment will be in your account within two days.
Scott Voelker
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