eBay and PayPal fees totally unacceptable - help!

I find it quite rude that for so many years, ebay and paypal combined have a fee of almot 13%
i understand the fact that they're exposure is huge and you sell trough their services.
but then again on a 475$ i phone i find it ridiculous to pay them 50 60 dollar fees.

i stop selling on ebay due to the fact .. that one considers .. we live in an extremly competitve world.. profit margins are low enough already i mean getting 20% margin on a product is something pretty decent.
so out of that 20% margin 13% goes to ebay paypal and 3% on the shipping. say... so what do i EAT??

So on top of the fact that i have to pay ebay and paypal 13% sometimes i have to pay the shipping. DUE TO THE FACT it s recommended for shipping to be free.

I always wondered.. how do power sellers deal with that i mean.. consider some days you see a tablet on sale for windows for 168$ or under 200$ with FREE SHIPPING..

EXPLAIN TO ME how does one make profit of that even tough it s refurbished still.. he has to pay the ebay the paypal fees PLUS the shipping fees.

I mean.. in my personal opinion i see it as LAUNDERING... cause you cannot possibly sell 7000 tablets in a day and make a large profit margin and deal with the headaches of returns and complains etc..

SOMETHING DOES NOT ADD UP!!

Can some one else share an opinion or express a tghought as to how that is possibly legally done.. and how ebay and paypal get away with those shameful fees..

Hi Tudor, in regards to fees ..... that's just the economics of a free market economy in play unfortunately. While the market will sustain those level of fees, they have absolutely no reason to reduce them. So we essentially have ourselves, at least those of us that use eBay, to blame for that.

In regards to how other sellers are competing, I think that sometimes some of us tend to forget that eBay has more than just dropshippers using the marketplace, so here are a few major factors that you have to be aware of ......

1. Wholesale Sellers, sellers who are buying in large wholesale volume to secure the greatest possible price and then selling on a very tight margin to create market dominance through price and create profit through high turnover.

2. Multiple sales, if you have enough stock or various items listed at prices where you will sell, then you can afford to make smaller margins across the board and still make a good total margin through multiple product turnover

3. Sales funnel, sellers that are selling selected products at cost or below in an effort to draw in traffic and then try to capture other sales while they have their attention or of course drawing in heavy traffic to market their off-eBay site to customers. So you see, not everything being sold on eBay is being sold for an upfront profit, it's just an illusion!

eBay is like a duck on the pond, it might look like nothing is going on under the water, but there is all sorts of varied marketing techniques going on behind the scenes, you just can't see them, all you can see are the results!