How Does eBay Pay You in 2023? An In-Depth Guide for Sellers

eBay has been around since 1995, establishing itself as one of the first and largest online marketplace platforms. Today, eBay boasts over 140 million active buyers globally and over 19 billion listings. As an entrepreneur looking to leverage eBay to sell products or services, understanding how payments work is crucial.

In this article, we will take an in-depth look at how eBay pays sellers, the payment methods available, tips for seamless financial management, and recent updates that impact getting paid.

Setting Up Getting Paid on eBay

The first step in getting set up to receive earnings from eBay sales is linking a payout method in your Seller Hub account settings. You have two main options:


PayPal is the most commonly used payment processor on eBay. As an eBay seller, you can instantly transfer earnings to your PayPal account and then withdraw the balance to your linked bank account.

  • PayPal charges sellers a 2.9% transaction fee plus $0.30 per order.
  • Funds usually transfer within minutes after a sale.
  • Allows sellers to automate payouts through tools like PayPal Mass Pay.

Direct Deposit

You can provide your bank account details to eBay and have earnings deposited directly into your business checking account.

  • No extra fees like with PayPal.
  • Can take 1-3 business days for funds to transfer to a bank account.
  • Minimal setup, but payments aren‘t automated.

I recommend exploring both options to determine the best fit based on your payment volume and needs. Many sellers choose PayPal because it‘s a seamless process and the fees are reasonable for the convenience it provides.

After linking your payout method, complete eBay‘s verification process. This locks your account to safely receive earnings.

Understanding the eBay Payout Timeline

eBay pays out earnings on a set schedule based on your chosen cadence:

Daily Payouts: Funds begin transferring to your PayPal or bank account within 48 hours of the sale completing.

Weekly/Biweekly/Monthly: Payouts processed every Tuesday for your available balance.

Example payout timeline showing payment schedule

Be sure to check your balance and pending payments in Seller Hub frequently to track incoming payments. I recommend bookmarking this page for easy reference.

Withdrawing Your Funds

When you‘re ready to withdraw your available balance, go to the Payments page in Seller Hub and select "Withdraw." For PayPal, you can set up automatic daily withdrawals as well. With direct deposit, you must manually initiate each payout.

Note that eBay reserves the right to place a hold on payments for certain situations like high-risk categories or new sellers. Be sure to review their payment hold policies.

Accounting for eBay Fees

When eBay pays you, they deduct their selling fees from the order proceeds. Be sure to account for these fees accurately in your bookkeeping.

Common eBay Fees:

  • Insertion Fee – $0.35 per listing
  • Final Value Fee – 10% of the total sale price
  • Shipping Label Discount – Varies based on shipping carrier

You can find a detailed breakdown of fees for each transaction in your Seller Hub account. Don‘t forget to account for PayPal‘s transaction fees as well if you use them for payouts.

Managing Taxes as an eBay Seller

As an independent eBay seller, you are responsible for paying any required income taxes on your earnings as a self-employed businessperson.

You should also check your state‘s sales tax rules. If you exceed $20,000 in sales and 200 orders in a year, you will receive a 1099-K reporting your gross transaction amounts to the IRS.

Some useful tips for sellers:

  • Consult a tax professional to understand your specific tax obligations.
  • Keep detailed records of your income and expenses.
  • Deduct eligible business expenses like eBay fees, shipping costs, etc.
  • Use accounting software to easily track taxes owed. QuickBooks Self-Employed is a great option tailored for eBay sellers.

recent eBay Payments News and Updates

As of 2022, eBay manages payments for sellers directly instead of relying on third-party processors like PayPal. Sellers now can get paid via direct bank transfer, debit card, or PayPal.

eBay also recently expanded Apple Pay as a payment option, allowing iOS users to easily check out. Mobile commerce continues to grow, with 48% of eBay‘s total transaction volume now occurring on mobile devices.

Be sure to stay up-to-date on new payment policies and features eBay introduces by checking Seller Updates.

Key Takeaways

The main steps involved in getting paid as an eBay seller include:

  • Linking a payout method like PayPal or bank account
  • Understanding eBay‘s payment timelines
  • Withdrawing available funds
  • Accounting for eBay and PayPal fees
  • Reporting your income for tax purposes

By following best practices around financial management, you can smoothly and successfully get paid for your eBay sales. Just be diligent in your bookkeeping, and leverage tools to automate the payments process.