Agree with Jimmy. I won't ever tell anyone really what niches I research, I just jump on them and go.
Doing the oversaturated markets is a bad idea. iPods will only sell when they sell, and the profit will be low unless you have a firm research on the market.
Get in the habit of selling something different all the time, open up your own store, and gradually move towards independence at lightning speed.
It can happen overnight, it certainly has. But the hard work is required.
If you want to get past the ridiculous paypal type 'fees' you need to consider what you are paying for on either eBay, uBid, or otherwise.
Are you honestly in need of that bold title, the subtitle, the color, 8 different pictures, and then on some the $29 to list it on page one?
I'll give you a hint....You do not need them, any of them if you play your cards right. You can use the base cost listing fee without any extras, and still sell it the same if not for even higher. A $1 listing fee is the same as a $14 one or $30 one, there is no difference, the only difference is how you get the customers there. Rather than paying 'somebody' else to get everybody to your items(which is how they make money), you do it yourself and pay nothing.
All you must do is drive the traffic/people to your site and listings and no matter where you are they will buy. And you know, you can cut all the middleman costs out. Profits can be anywhere from $20-$50 or higher per item, once you master the system, avoid the fees, and flood people to your products.