The lip is about 1" to 1 1/2" high all around the edge but it is flexible and sort of conforms to the shape of the cargo area side walls. It is good quality material. It would take a lot to tear it or poke a hole in it. It is also pretty flexible so you can lift it up to access the storage area underneath with no problem. I highly recommend it to keep the area back there clean. I have the floor mats as well and they also have the lip and are of the same material. All of them have a BMW logo on them.