I wrote Missionfish and hope they will provide an answer, but they are overworked and I figured it might be more productive to post here.
I began selling on eBay for Place For Cats, a not-for-profit. All (100%) of sales profits go to the charity.
Here's the thing: while eBay advertises that they take nothing, in fact, via Paypal (which eBay now owns), on low-cost items, THEY take 100%, leaving nothing for the charity. Paypal does this by seizing a fee based on the item cost PLUS SHIPPING.
For example, on a 99 cent item that sells for that, which costs $14.50 to mail (housewares, heavy bowls, bulky items, etc.), Paypal takes approximately one-half of the first $1 and approximately 4% above that. The charity ends up with nothing, and I end up paying Paypal out of my pocket the difference between the 99 cent selling price and the fee confiscated by Paypal based on the transaction (item price plus shipping cost).
Is any other Seller for a charity addressing this problem? Has Missionfish addressed this problem before??
I'm not sure I understand why your Paypal fees are so high. We are a nonprofit direct seller and our Paypal fees are 2.2% plus 30 cents. Of course we do offer free (included) shipping but I would think the end result would be the same.