How does eBay payment work? Full Guide
Now since eBay is a marketplace or e-commerce platform, it is only natural that buying and selling take place on this platform. And since you have buying and selling taking place on the platform, transaction or sending and receiving of money comes in place, which is where the question of how does eBay payment work come in. Is it the same as it is for other platforms like it or is there something different going on? So the thing is that eBay has something in place that is called the Payments system which is tasked with taking care of customers’ payments. So once the buying has happened on the customer’s end this system will now process the customer payment and cut from it the payment processing fee and the commission and then the remaining amount is sent to you. In all this eBay also allows you to pay the shipping charges before you have even received your funds which may take up to a few days to make it to your account.
What is eBay?
We may have skipped it earlier but it is never too late for an introduction. We know eBay is an e-commerce company but what we don’t know is that it is an American multinational one. The headquarters of this company is situated in San Jose, California. Pierre Omidyar founded this company back in 1995 on 3rd September when it was named AuctionWeb before getting its present-day name in September 1997. When you ask what is eBay, the alternative answer to it can also be that it is a b2b and b2c marketplace. This company had operations running in no less than 32 countries by 2019 and by 2021 end it had a workforce of 10,800 people and a revenue of 10.42 billion dollars. eBay is not your average marketplace or e-commerce platform, here you have the regular listing of products and buying by the buyer and additionally, the platform also hosts auction-style sales.
How does eBay work?
We saw how does eBay payment work but what we didn’t is the fact that how the platform works.
As a buyer, you can head to the eBay website and search for products from various categories like clothing, electronics, watches, antiques, and more. Now check out the details of the product that you end up liking or are considering buying. Once your choice is confirmed you now enter the bidding phase which is the part that binds you with a contract agreement where you now have to buy the product if you end up winning the auction. Auctions have a minimum starting bid price and also the seller has a price in their mind for which they might let go of the product but if this figure isn’t reached then they can keep the product themselves. You also have the option of buying a product just the way you would on any other e-commerce platform simply by buying it then and there or you also can head to the product for auction with the option of Buy it now and bid a much higher price than the starting price and get the product instantly. Once the product is selected and the buying stage nears its end you now have to pay for your purchase. Each seller gets to decide the mode of payment that they will accept and the options to choose from include cash, cashier’s check, personal check, PayPal, and BidPay.
How to sell on eBay?
Having seen how the buyer side of things works it is now time to see the seller side as we look to unravel how to sell on eBay.
The first part of your task is to create a seller’s account. Here you either get yourself a personal account if you are there just to sell limited small stuff, however, if you are there for selling bulk products and quantity then get yourself a business account. Next up we have to set a user ID for ourselves which is also the name that will be visible to people visiting your listings. Then you need to select among debit cards, credit cards, and PayPal as to what will be your payment method when you are charged certain fees for seller activities. The next process is to create a listing of the product. Here you have to click pictures of the product, add a description about them, and do other various stuff related to the product. The next step includes selecting how the product will be sold, that is if it is up for instant buy or you want to put it up for auction. Pick a listing duration is the next step in line. For the auction, you can select a day, a couple of days, or a week or so. On the other hand for normal listings, you can go for Good Til Canceled option which allows the product to be released every month until sold or canceled by you. You need to now set a price for the product and it is important to know how does eBay payment work so that you can plan your finances accordingly and set a price similarly for each product. Next up it is time to set the shipping options where you can charge the customers as per their rate, product weight, etc. or you can ask them to collect the product themselves from your mentioned location. It is now time to manage your listings and do whatever it takes to build a good reputation among potential buyers so that you can complete transactions.
Also Read: Why is AliExpress so Cheap? Is it worth it?
How does eBay work bidding?
It might not be rocket science to understand how does eBay work bidding process but it won’t harm to learn a thing or two about it. Bidding sets you up against multiple competitors fighting for the same goal as you and so it might be sensible to go in with a strategy rather than just trying out your luck so that you can come out with good results. What ideally happens is that you make an offer to the seller which they may accept or decline or to which they might even make a counteroffer. Just because an item is up for auction doesn’t mean you can’t outright get it, if it has the option for instant buy as well then you can offer the seller a price that you think might convince them to not go ahead with the auction anymore. You can use certain tricks while heading into an auction. It can be looking for a misspelled term of a word. Such a listing is not to be found by everyone and so it increases your chances of winning the auction as you have lesser competitors. Another trick that can help you is learning how to perform a bid snip with perfection. This is swooping in on an auction in dying minutes or seconds and making a bid at such a time that it becomes difficult for others to outbid you and by default give you the auction win. Lastly, you need to meet the minimum reserve price set by the person who has put up the listing, or else even winning the auction by being the highest bidder would mean nothing as the person won’t sell the product. They might be forced to sell the product under that price if the response to the listing is underwhelming but this is not a sure-shot method to rely on.
How does eBay bidding work for sellers?
Again now that the buyer’s side of the bidding has been understood it is now time to look at how does eBay bidding work for sellers. The basic thing to know is that the seller lists a product on eBay and the bidders start making bids as per their capacity. The seller also sets the duration for which the product will be available for bidding. To the product listed for auction, you can also add an instant sale price which will appear to the people before the first bid is made. This option allows a buyer to offer a big sum directly for the product and cuts out the auction process. As a seller, you can be charged an insertion fee when listing items. And if the product gets sold then you receive one insertion fee credit for it. You will also be charged for the sale once the transaction takes place. If you use advanced listing upgrades and services which are optional then you will have to pay charges for them as well.
Can I sell on eBay for free?
We know how does eBay payment work but is it possible that someone sells a product on the platform for free? Surely every seller that has been on the platform has been guilty of having this thought at least once as they might not have been too pleased with paying so many fees that they might be charged by eBay. However, unfortunately for these people, the answer to, can I sell on eBay for free is no. eBay will allow a person with a normal account to go ahead and list stuff on their platform for free, however, the limit is set at $250 a month and post that each listing will command a 0.35 dollar fee. Also, the seller will see themselves paying a 12.9% fee on the final sale value of most products as well as a 0.30 dollar charge per order. Additionally, you also might see yourself paying money if you want to promote or upgrade your listing. So we know how does eBay payment work for sellers in the case of buyers as well as in the case of the platform and instead of getting to sell for free we have come out of this segment with as many as four fee-paying categories.
How do you pay after winning a bid on eBay?
eBay accepts a lot of payment modes and so how do you pay after winning a bid on eBay depends on you. You have the option to pay via PayPal, Google Pay or Apple Pay in addition to credit cards and debit cards in most cases. When unsure, head to the Postage and Payments section of the respective listing and check for the accepted payment modes. Most products can’t be purchased using money orders, bank wires, or cheques but they can be used to buy real estate, vehicles, business equipment, and other stuff.
How to buy on eBay for beginners?
If you have been on the internet and searched about eBay in the past then you would have come across articles addressing topics like how to buy on eBay for beginners. While there might be some substance to these articles it is not like you can’t work out your way without them. The basic things you need to know about buying on eBay have been mentioned above in the how does eBay payment work section and that might be enough to know your way around the platform while experience may come with usage over time. So for now all you need to know is that you need to make an account, start searching for listings you are interested in, and then buy it by paying instantly or bidding for it and then await your order. That should take care of all of it.
Is it safe to buy on eBay?
You can be a buyer or a seller, either way, the question of whether is it safe to buy on eBay can arise and to that, we will say it perfectly is. eBay is not only one of the oldest e-commerce websites but also the most popular ones and that wouldn’t have been the case if it weren’t safe. eBay as a company has made investments in the safety of the platform and it also has got the backs of buyers and sellers, but buyers are a priority. It’s not like frauds and scams haven’t taken place on the website or won’t in the future but that doesn’t mean that you should avoid the platform altogether. eBay has got site certificate and a cybersecurity team in addition they work with PayPal to make sure no problems occur in the transaction area and also buyers get access to the seller’s contact information while also receiving buyer protection coverage at the same time. So that’s all on how does eBay payment work. We saw what is eBay and how does eBay work. You also saw how to sell on eBay. We learn about instant buying and selling on eBay and also how does eBay work bidding process for buyers and how does eBay bidding work for sellers. To end it we also looked at how do you pay after winning a bid on eBay, how to buy on eBay for beginners, and whether is it safe to buy on eBay. And after going through all of it we don’t think we can have an issue or anything negative to say about eBay.
