we have bought and sold on ebay for years. Sadly they are the BEST game in town.
From a sellers standpoint:
Millions of people looking and possibly bidding on my stuff to me is worth the ebay fees. We have been selling on there since 97. It's the world's biggest yard sale. Where else can you unload all this crap.
From a buyer standpoint:
Same deal. Where else can I find all these gems to fill our house up? Everything I ever wanted at my fingertips. Atari 2600?? Got one. Sadly Ebay has/will overthrow most all the brick and mortar businesses. I have already seen my attitude change over the years. I catch myself saying, $125, h@ll I can get it on Ebay for $50!

Paypal, my feelings are the same. Love to hate it.
As a seller I can take PP and people can pay me for a $1 item to a $500 item w/ a credit card and I get the perks of being a biz except I don't have all the expense of being one. Small price to pay in my opinion.
For a buyer. I had rather use PP. I pay by Debit 98% of the time. If it's something I can't afford but want it, I use my CC and pay for it over time. If it's cheap, like a $3 chip. It isn't worth my time to go to the PO and send a MO and stamp. Debit it is...
I thought a lot of Ebay when it started. Heck we even bought Ebay when it IPO'ed. My stock advisor told me she had never heard of it and advised me against it. Needless to say, after it went thru the roof, she wasn't my advisor anymore :-)
I don't like the fact that all the fees keep going up and this and that but if you can sell an item and pay 10% in fees total you are doing well. Try consigning a piece to a dealer to auction. You will pay 30% easy off the top and I guarantee you will NOT get the hits that Ebay does.

Bottom line, d@mn why didn't I think of Ebay and Paypal!!!!