"They offer an item with an auction price or buy it now price beginning at $0.01. Then they insert an incredible seller shipping price; for example - $21.95. When this happens, it all but eliminates the percentage of eBay profit from the sale. I still see it happening - can't believe someone hasn't blown the whistle on these members. It's rare to see an $0.01 offer; usually it's more like a couple of dollars for the item and a bunch for shipping - e.g., several times the cost of the item."
What you've described was the way eBay used to be, in its early days.
When it started, eBay charged its fee on only the cost at which the item was sold. In the past.
The cost of postage that was shown in the listing was not subject to an eBay fee. In the past.
Lots and lots of dishonest sellers took advantage of this. For the buyers, they paid the total price, as they do now. But for sellers, to continue your example, it might cost less than $1.00 to mail that collectible trading card. So the seller pocketed $20.95. And eBay only got to keep a percentage of that One Cent item price.
It took eBay a few years to "close the door on this kind of activity".
Nowadays the seller is charged eBay's fee on the total amount the buyer pays:
Cost of the item + postage + sales tax (if any), and a couple of other less common factors.
I will say it is kind of refreshing, though, to read your concern that eBay might not be retaining enough in fees. Even now, after so many years of eBay charging fees on that total price paid by buyers, this community board gets an awful lot of posts from sellers who think eBay should charge less, eBay shouldn't charge fees on this, that, or some other factor, suggesting eBay is breaking unspecified laws (or quoting laws that don't apply), or subscribes to discredited political theories of the 20th century, or is just flat out Greedy.
My suggestion: keep reading this and the other eBay community boards. It's the best way to learn eBay's procedures and practices.
