Ebay is all about margin and volume. I sell yarn, minimum bid $16, average sale price is $19. Package cost is $8 for the goods, then about $2 to ebay and $1 to paypal. My average net/ship is $8. If I run more than 5 auctions per day, I start to get no-sells. So - I have a very healthy margin and potentially could get rich, but I can't generate enough volume. It's a trickle of money, not a flood. Still, 150 shipments/month at $8 each isn't bad. USPS provides free shipping supplies and picks up at my door. College kids will pack hundreds of envelopes for $50. It's a good deal. The weird thing is - I link to my own web site with big photos of the yarn. ON that site, I offer to sell directly for less than eBay. I have had people contact me wanting to bid on more yarn...when I direct them to the "buy direct" site, they almost never use it, even tho it's cheaper. They like the bidding process.