I'm NOT a fan of eBay and their fees, BUT I'm in a rural, small-town setting and have little choice. Around 70% of my total sales are eBay sales, and most of the rest come from this forum; I have a very small local market.
So, for me a necessary evil (John, I loved your dark side comparison!).
I'm not quite sure where everybody is getting this 12-to-15% though. The most I've been hit with is around 10%, and it's usually in the 7-to-8 range. And that includes listing fees, which will vary with how many listings you have per month (the basic, bare-bones listing fee is ALWAYS free on your first 50 listings per month), how many pictures you use, how many days your listing runs, whether-or-not you use a BIN, etc., etc., etc. To be on the SAFE side, when I list something I figure it's going to cost me 10%; so I figure that "in" when I set a minimum bid. In other words, when I figure what the lowest price that I have to get on any particular item, I'm figuring in ahead of time the fees and whatever else so that I know I'm going to get what I need.
Now, if you don't get FANCY with your listings, it doesn't have to cost you a penny IF YOUR ITEM DOESN'T SELL. Like I mentioned above, your first 50 (basic) listings per month are free. One picture is free. Keep it auction-style only, and it's free. That means IF your item don't sell, it don't cost you anything. BUT throw in extra pictures, gallery views, BINs, set reserves, and yes it costs you fees even when you don't sell.
I do have some of my stuff for sale at a local (well, next town over) music store on consignment. Guess what? The fee structure is this: 20% on any sale up to $500, 15% on $501 to $1000, and 10% on above $1000. I've checked around, and that's pretty standard on consignments in this part of the country... so I have to ask myself, "is eBay really THAT bad?" And guess what else? They charge ME the 3% if the customer uses his credit card!
And yes, Paypal cost you about 3%, on top of what eBay charges. But it's about the same cost that banks charge businesses to use credit cards, so IMO that's just LIFE; it's the way it IS. Ever been to a convenience store that requires a $5 minimum purchase before you can use your debit/credit card? That's why -- it's costing them 3%. I usually have that in mind when I set my minimum bids, too.
Well, enough for now as I've got a wiring project to do (no kids in school today due to snow). But just had to put in my 2 cents...
Bill