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I starting selling on eBay in 1997. We made quite a bit of money until about 2004. Then it seemed like the market got too saturated and margins went down. If you are selling a lot (we were doing over 100 auctions a week) you need auction software which can be pricey... overall we figured with eBay fees, PayPal fees, and auction software fees our costs were about 14%-18% per item. When you are usually working with 20%-30% profit margains it really doesn't workout.
I know people who still make money on eBay, but they are in small niche markets. We sold toys and collectibles, so Wal-Mart and Toy-R-Us put us out of business.
I know there are things that still make money on there, but be careful...
Good luck!
-Sparks
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