Making Money on Ebay – Collecting your Payment!

Time for our final Making Money on Ebay post. If you are just joining us be sure to check out the entire Making Money on Ebay series!

The final post is on collecting payment. To collect payment you have to have a paypal account. Ebay requires this! It also has to be a paypal account that accepts credit cards. That means you will be charged fees when you collect your payment. You have a choice between two fees:

  • 2.9% + $0.30 or
  • 5% + $0.05 (called their micropayment pricing)

For most people the first option is better. If you sell lots of small priced items then the second is better. Remember that your payments include shipping!

  • If your payment is $1 then you will be charged $0.33 with the traditional fee schedule, $0.10 with the micropayment schedule
  • If the payment is $5 then it would be $0.45 for the traditional and $0.30 for the micropayment schedule
  • If the payment is $10 then it would be $0.59 for the traditional and $0.55 for the micropayment schedule
  • If the payment is $20 then it would be $0.88 for the traditional and $1.05 for the micropayment schedule

If most of your items + shipping costs $11 or more then stick with the regular pricing!

Collecting payment is simple once you have paypal – just wait for them to pay you. You will get an email saying they paid and then you can ship!

{ 4 comments… read them below or add one }

1 Anonymous March 3, 2009 at 2:18 pm

I’m sorry, I’m a little slow here- what do you mean by first and second? I have always wondered about these fees (I mostly sell very low selling stuff) but still don’t understand how they work. Thanks!

Reply

2 LittlePeopleWealth March 3, 2009 at 5:56 pm

I’ll change my verbage on that 🙂

The first fee schedule is the “traditional” one.

The second is a new one that they now offer for what they call micropayments. If most of your payments are $11 or less than that fee schedule is cheaper.

You choose which structure you want when you sign up.

Reply

3 Coco March 4, 2009 at 9:38 pm

Hi! I loved this tutorial series on Ebaying (especially on photo-taking tips). Thank you for a great post. I gave you Kreativ Blogger Award. Come & check out my blog to pick it up.

Reply

4 LittlePeopleWealth March 4, 2009 at 10:48 pm

Awesome – thanks 🙂 I’ll post it sometime this or next week!

Reply

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