Decca - I see exactly what you mean, and how fees come into the selling price, but for those who look at; other selling prices on ebay - fees - item cost = profit to see wether they can compete in the market, then it makes it extremely hard to make a profit, and literally removed the "grab your self a bargain" messages you get on ebay because sellers increase their prices. Less profit margin = more profit margin for powersellers who therefore absolutely dominate the markets.
If the costs are too high then unless sellers are losing money, they will go elsewhere like you said, so this move by Ebay is stupid really.
What used to make ebay interesting was the small ocassional sellers. They are also the ones offering bargains. This fee structure will finish that segment off. Getting customer back is VERY difficult. Ask BT... :-)
I agree Ebay have to make their money, and from a seller's point of view it should simply be regarded as an overhead. But still doesn't stop the fact that these fees are ridiculous, 10% of my profit gone. It really is a lot. The thing that's even worse though I think is prices to have your item on featured first, especialy as not even power sellers get discounts on that.