Understanding How PayPal & eBay Work Together
If you have even shopped on eBay, you may have noticed the PayPal icon as a payment option. Or if you are new to eBay, maybe you wonder how to pay for items purchased or how you receive payment for items sold. PayPal is a convenient way to complete eBay transactions.
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EBay
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EBay is a website where you can buy and sell almost anything. Some of the items sold through eBay are used while others come straight from manufacturers. To make transactions on eBay, you must set up an eBay account; the process is free. One of the most widely used methods of payment on eBay is PayPal.
PayPal
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PayPal is a secure payment portal available on the eBay website. PayPal is owned by eBay, but the two companies function independently. To use PayPal as a payment method or to accept PayPal as payment, you must create a PayPal account using the PayPal website. Setting up an account is free.
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Shipping Information
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When selling an item on eBay, it is possible to create and print shipping labels, insure the package, arrange for package pickup and track the item shipped by using the linked services of eBay and PayPal. EBay has applications for all these if you wish to send an item through the United States Postal Service (USPS). You can also arrange to have postage automatically paid through PayPal. If you ship through UPS, you can print UPS shipping labels.
Transferring Funds
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Transfer money from a PayPal account by using the "Bank Accounts" link on the PayPal website and inputting your bank account information. The account information is encrypted for security so that the buyer or seller you are doing business with cannot see the name of your financial institution. You may use multiple accounts. You may also transfer funds from a bank account into PayPal for eBay purchases.
Paying EBay Fees
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When listing an item to sell on the eBay website, there is a listing fee involved. Fees will vary depending on the selling category or item to be sold. If you add special features to the listing such as a bold heading or an enlarged photo, there are additional fees. Typically, the fees will range from 20 to 30 cents. Once the item sells, there is a final value fee, which is typically around 8 percent of the total sale price. PayPal may be used to pay these fees. There is an option to have the fees automatically withdrawn from your PayPal account each month if you are a frequent eBay seller.
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