How Does eBay Pay You in 2024?
How Does eBay Pay You?
When you make sales on eBay, you need to receive payment and transfer the earnings to your bank account. As an eBay seller, you have a few options when it comes to getting paid:
PayPal
PayPal is the most common payment method on eBay. When you link your PayPal account, buyers can instantly pay through PayPal when they purchase your item. Funds from PayPal sales go directly to your PayPal balance. You can then transfer money from PayPal to your linked bank account, usually within 1-2 business days.
Direct Deposit
You also have the option to get paid via direct deposit to your bank account. This allows you to skip PayPal and have your eBay earnings deposited directly. Direct deposit typically takes 1-2 business days to reflect in your bank account.
Check
eBay can mail you a physical check containing your earnings. This is the slowest option, as mailing and depositing the check can take 5-10 days to access the funds.
The best payment method for most sellers is PayPal or direct deposit, as checks take longer and come with additional fees.
Setting Up Getting Paid
To start getting paid, you need to set up a payment method in My eBay or Seller Hub:
Linking Payment Method
- Go to Payments > Payout Settings
- Choose to link a PayPal account or bank account
- Enter your account email/details and confirm
Verifying Payment Method
- In Payments, select your newly added payment method
- Follow prompts to verify using amounts deposited into your account or confirmation code sent via email
- Confirm verification and activate receiving payments
Once your payment method is verified with eBay, you‘re ready to get paid as soon as sales start rolling in.
Receiving Payments
Understanding when and how payments are sent to your linked payment method is key:
eBay‘s Payment Schedule
Daily Payments – Funds available within 2 days of eBay confirming order
Weekly/Biweekly Payments – Funds paid every Tuesday for available balance
Checking Your Balance
View pending transactions, available balance, and payment history in eBay Payments. You‘ll receive an email notification when new payments are sent.
Withdrawing Funds
Withdraw to PayPal or bank account in 2-5 business days once balance threshold is met (varies based on performance).
eBay may hold payments for some high-risk categories to ensure successful delivery.
Fees & Taxes
When earning money on eBay, you need to factor in applicable fees and taxes:
eBay Fees
eBay charges:
- Final value fees – % of total sale amount
- Insertion fees – for auction-style listings
- Invoice fees
View fee breakdowns for each transaction in Seller Hub. Fees are automatically deducted from earnings.
Taxes
You are responsible for paying income tax and may need to collect sales tax or VAT depending on your state and buyer‘s location.
Ebay will issue a 1099-K tax form if you meet >$20,000 in sales and 200+ transactions.
Getting Paid Elsewhere
eBay has a simpler fee structure compared to Amazon. Amazon charges:
- Higher referral fees per category
- Variable closing fees per item
- Monthly subscription fees
- Storage fees
However, eBay has fewer sellers looking for wholesale orders. For consistent bulk purchases, dedicated marketplaces like Alibaba or Salehoo are preferable.
Next Steps
Getting paid securely is crucial for any eBay seller. Follow these tips:
- Choose PayPal or direct deposit for fastest payments
- Verify your account and payment method
- Track your balance and withdraw earnings
- Factor in fees when pricing items
- Save for tax season using 1099-K forms
With the right tools and understanding your options, you can turn your eBay passion into profit.
