From a nice Gary Rivlin piece on troubles at eBay in the weekend NY Times:
“For a lot of our sellers, the average selling price is getting less and less and their eBay fees continue to go up,” [said the head of the Professional eBay Sellers Alliance (PESA)]. “So their profitability is declining.” As a result, he said, “a lot of sellers have disappeared off eBay” – a trend that eBay’s “aggressive” fee increases, he said, are likely to accelerate.
Where will they go? Some sellers will do what [the head of the PESA did]: realize that it is much more economical to operate your own online store and to buy keywords from search companies like Google and Yahoo to point potential buyers to your site. He maintains a presence on eBay, he said, but outside the confines of eBay, where hard-to-believe deals are the coin of the realm, he can charge more for the same shoes.