Here is the bottom line:
5. eBay charges fees every step of the way. Assuming a chip seller places only one image and a gallery picture, the seller’s cost for a chip initially listed for $4.99 and sold for 14.99, would be 0.35+0.78+0.25 = $1.38 (insertion, final value, and gallery fees, respectively). This amounts to 9.2% of the seller’s income from the item, much higher if the final price is lower, as we will note below. Looked at from the buyers’ side, part of this amount comes from their pockets as well since sellers will instinctively price their initial (or “buy it now”) prices or S&H fees higher to account at least partially for eBay fees. If additional images are supplied and/or bells & whistles are added, eBay fees increase rapidly over 10%. Actually, the seller’s cost is much higher than 10% in any case, since one must also account for unsold items for which insertion and gallery fees have been paid. Assuming one unsold item for each one sold (usually an optimistic estimate), the seller’s actual cost is 1.38+(0.35+0.25) = $1.98, i.e. 13.2% of the income derived from the item sold. Of course we have assumed a three-fold increase of the item’s price during the bidding, which may or may not be realistic. If the item sold at the insertion price, then the eBay fees would add up to a whopping 39.7% of the seller’s income. This for two items which stayed at auction for 7 days, one sold and one unsold. Now let us look at Collecting Fun:

For the first three months of a seller’s registration (before Dec. 1, 2004), all Collecting Fun listings are absolutely free (no catches whatsoever). Plus, there is no obligation to stay with us, your account will be considered closed on email notification at any time, and any monthly fees prorated. For the next three months, our fees are half-rate. Here is what this would cost the seller: Our full-rates are listed at the web site, but a comfortable starting level would be our silver level where the full-rate is $10 per month for up to $750.- of inventory listed. At the limit, this corresponds to 1.33% of inventory for a one month period. The percentage would be more if less inventory is listed, and would be less if the seller were to go over $750. worth of inventory. As an example, our next level is $20 per month for $2000.- worth of inventory, a 1% rate at the limit, with a lower rate above $2000.-. Thus at half-rate, the seller would pay $5 per month for the silver level if the inventory remained below or at $750. At the end of the first six months, the full-rate of $10 per month would apply. As a result of the much lower fees, known accurately beforehand, the sellers’ items will be fairly priced, and the buyers will also benefit. Note that Collecting Fun fees do not depend on whether the item is sold or not, but only on whether the item is listed within a particular month or not. Why the free listings and low rates: The free listings is so that we can attract sellers to grow our business. In other words, we are simply investing for the future, and believe that once you start with us, you will want to stay with us. As for the low rates, this too is simple. We have neither the size nor the overhead of eBay. Our expenses are much lower in comparison and we are not looking to fly in corporate jets by charging you exorbitant rates.
(to be continued)