1). Don't forget the FVF at 8.75%
That's ONLY on the first $25, or a fixed price of $2.19 on items > $25. Anything over $25 is charged $2.19 + ((price - 25.01) * .035). That amount used to be $1.31 at 5.25%, or an increase of 88 cents for the $25 item. 88 CENTS!
So, any item that sells for $25 or more, is automatically 88 cents or more in fees. The difference from $25 to $1000 is only .025% more, not much. The big chunk is every auction $25 or more nets eBay at least 88 cents more. Do the math on that one.
2). How exactly does Paypal charge... I read 2.9% + $.55 per transaction. Does that mean that they charge us a percentage as well as 55cents, or that it is one or the other? If it is the first answer, we are losing money on our .99 sales.
I don't know the exact Paypal formula. The easiest way is to just look at your Paypal log and use the stated fee amount. Remember you're paying fees on the postage too! Ship a heavy item, and you pay more Paypal fees!