How to Get Paid on eBay: A Detailed Guide to Setting up Payout Methods

The last thing people should be worried about while focusing on their online business is to receive payment for sales.

For people worried about how to get paid on eBay, they’ll be surprised to know that quite a few people run into a stumbling block.

Getting paid on eBay doesn’t have to be a complicated process at all. In fact, it is quite easy to set up a payout method to receive payouts as an eBay seller.

By setting up a regular payout method, sellers can run their online business efficiently and focus on the tasks that yield the most ROI. Here are the fastest and safest ways to get paid on eBay.

Can You Get Paid on eBay Without a Bank Account?

Yes, people don’t need an established bank account to get paid on eBay. But they need an alternative for eBay to transfer money.

It’s important that eBay is compatible with the bank people have an account with – the steps to find this will be discussed later.

Having a linked bank account is much more convenient and will allow them to receive sales proceeds directly without any intermediary.

How Much Can You Earn by Selling on eBay?

According to Indeed.com, an average seller on eBay makes around $137,400 yearly. But, there are no limits to the amount you can earn from the site. Your income will depend on the demand surrounding the products you’re selling.

What You’ll Need to Get Paid on eBay

There are certain requirements eBay asks sellers to meet. Here is a checklist of the items you should have:

• Bank Account/Checking Account: eBay requires sellers to have an active bank account as it is their primary payment method.
• Computer or Mobile With a Strong Internet Connection: As most of the business will be conducted online, it is imperative to have a device that can help sellers navigate the site.
• Tax ID: To register, you will need to provide eBay with a Tax ID, which will be verified. eBay will also send you a Form 1099-K to file your income from the site.

Where to Get Paid on eBay

It is mandatory for sellers to choose their bank accounts as the main payment method on eBay. Any local checking accounts can also be used so long as they are supported by eBay.

Here is all the essential information regarding where sellers can get paid on eBay:

How Much Does eBay Take Per Sale?

eBay takes a cut of 13.25% or lower from each sale made from the website, plus $0.30 per order.

The eBay selling fees are deducted directly before receiving the funds through the Managed Payments System.

People can list their items for free on eBay after signing up for a free eBay seller account. But in case there are more than 250 listings per month, eBay charges a listing fee worth $0.35 per post after the 250th.

Merchants on eBay can choose from various subscription plans to lower their costs and streamline the listing process.

What is the Safest Way to Receive Money on eBay?

Before the partnership between PayPal and eBay ended, it was widely known as the safest way to receive payouts for eBay sellers. One of the reasons behind this was the heavily promoted partnership between eBay and PayPal.

While customers still have the option of completing their purchase through their PayPal account, an eBay seller can no longer use it as their preferred payment method.

To get paid on eBay, people now need to opt for other payment options to receive their sales proceeds.

Bank accounts remain among the safest options for sellers to receive payments from eBay. Sellers can also choose their credit cards or debit cards to receive the payment for their sale.

A checking account still remains the primary and safest option for sellers to get paid.

How Long Does it Take to Get Paid on eBay?

After the buyer’s payment, it takes up to two days for the payment to be processed by eBay. Once their payment has been confirmed, eBay sellers will need to ship out the item.

After the payment has been processed, it will appear as available to withdraw, provided any hold periods have also expired.

But, it may take up to four days for the funds from eBay to be reflected in the checking account after it has been processed and withdrawn.

To avoid having to manually redeem payments from eBay, merchants can set up scheduled payouts.

The frequencies for eBay payouts can be set to daily payouts, bi-weekly, weekly, or monthly payouts. Bank holidays may affect this time scale, and in such cases, it might take longer to be reflected in the account statement.

Apart from daily payouts, withdrawals scheduled monthly are processed on the first Tuesday of every month. Similarly, biweekly and weekly payments are all processed on the respective Tuesdays of each week.

Setting the payout schedule to daily will allow sellers to get paid around two days after the selling items have been paid for.

Why You Should Consider Selling on eBay As a Side Hustle

There are several reasons why you can start selling items on eBay as a side hustle to boost your income. Here are the best ones to take into account:

• No set schedule or location: You work on your own time, from wherever you want. This allows you to easily supplement the income from a typical 9-5 job without being tied down to a schedule.
• Unlimited earning potential: The sky is the limit in terms of earning potential. By running ads and marketing your existing listings, you can further boost your sales and income.
• Access to thousands of customers: eBay is among the world’s biggest e-commerce brands and allows sellers to be visible to thousands of customers daily. As a result, they don’t need to build a site from scratch.
• Verified payments: eBay ensures the payments made by customers are verified and safe before transferring them to the sellers.

Problems With Selling on eBay

eBay introduced its Managed Payments System in 2018, and three years on, in 2021, it made it compulsory for sellers to sign up for MPS.

Other eCommerce platforms such as Mercari, Poshmark, and Etsy all have their versions of a payment management system. And eBay is one of the sites to have introduced such a feature later on.

While there are multiple reasons why it is a good idea to use the managed payment system, there are charges levied on every sale.

The transaction fees include the sales commission and the payment processing fee. The number of items sold and the final value of the order also dictate the eBay Managed Payments fees.

Here’s why it is one of the problems with selling on eBay.

• Hard to keep track of charges: It’s quite hard for people to keep track of the fees eBay charges. Since the payments are automatically deducted, it can be difficult to identify any mistakes on eBay’s part if there are excess charges.
• Higher processing times: PayPal allowed sellers to withdraw their earnings almost instantly. But processing times have now gone up significantly. It now takes a couple of days for the funds to be available and another few days for the bank to process it.
• Increased shipping times: This situation occurs in cases where the seller does not have enough funds for shipment labels. If they wait for eBay to pay them for the sale, the time taken to ship out the item will involve a gap of a few days which may discourage buyers and lower their eBay sales.

How to Get Paid on eBay: Steps to Link Your Bank Account

Things to Consider with Selling on eBay

Here are some important points you need to consider before deciding to sell on eBay:

Alternatives to PayPal

Due to the high payment processing fee, the unreliable customer service, and the doubts surrounding their data integrity, some sellers are moving away from receiving payments on PayPal.

You can choose between using your checking account or your credit or debit card to receive payment.

Sellers will need to provide information such as their Social Security Number, bank and card details for tax purposes and verification.

Otherwise, they run the risk of getting their account restricted and payments withheld until the information is provided.

How to Get Paid on eBay Instantly

In most cases, sellers set up a weekly payout schedule or a monthly one to access their earnings. But eBay also has the option for funds to be withdrawn on demand through the MasterCard debit card.

In this scenario, it takes only up to 30 minutes for the money to be withdrawn for an extra fee.

This additional fee is 1.5% of the payout being withdrawn, for a minimum of $0.25 and a maximum of $15.

Alongside the combined fees for processing funds, the instant withdrawal fee is also applied before the amount being sent to a debit card.

Does eBay Pay You Directly?

eBay pays sellers based on the payout method chosen. Which means it can pay you directly through the bank account. Or, it can also pay through an intermediary of choice.

Until 2021, eBay sellers could opt for PayPal payments. But, since the end of their partnership, they do not have the option to receive payouts through PayPal anymore.

Before depositing the money with the bank, eBay takes its cut of the transaction, which includes costs such as value and insertion fees, store subscription fees, and any promoted listings.

Through the Managed Payments System, eBay automatically processes these deductions and sends over the remaining funds.

Frequently Asked Questions

Similar Ways to Get Paid

Here are some similar ways to get paid you should consider:

• How to Sell on eBay for Free: Learn more about how to start selling on eBay for free through this in-depth guide.
• Get Paid to Type: Learn about all the ways you can make money through a variety of typing jobs.
• Get Paid to Watch Movies: Check out this article to discover how to earn around $245 monthly just by watching movies.

Wrapping Up

Sellers on eBay can now set up their payment method right after creating their eBay seller account and opt into the managed payments system to get started with their side hustle.

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