I have heard that ebay, on purpose, were trying to move away from people selling low value stuff, on ebay. But it sounds like craziness to a number of people, because they are basically getting rid of a huge pile of potential business, by doing that.
Well I have not heard anything specific but that has always been my suspicion. The system was always rigged against low value sales and now they are taking actions which do make things even more difficult. Yes they will lose a lot of business, as I said I once turned over £1900 in one month that quite a lot of eBay fees I mean let's face it what the fuck do they do for me except take the money and provide a standard website? But naturally there are run by experts who know better and I now know better than to sell small items on eBay they can go and screw themselves for all I care. I did put all my stuff up on eBid but nobody seemed to be interested
This is one of the websites which explains a bit about what Ebay did to small sellers. Other website(s) explain why it was done by ebay. I can't remember where that article was, and can't quickly find it sorry.
http://hubpages.com/business/Ebay-Secrets-That-People-Need-To-Know-AboutI have a degree of sympathy for Royal Mail though.
Disclaimer: I'm NOT an expert on Royal Mail, so could be slightly or entirely wrong.
In modern/changing times, their delivery service boils down to one of two methods.
(1)...By automatic machinery (mainly), so there is a huge one off cost, for each big machine. But after that payment (and its maintenance etc), it costs about for same for it to handle 1 letter or small packet, or a million, per day. (All figures are extremely approximate). So it is viable for Royal Mail, to charge LESS for letters and smaller items. I.e. Ones that can go through mainly fully automatic machinery, with minimal human contact.
(2)...By partial/full manual handling, and/or delivery by postal van (rather than by the postman on his/her rounds). This applies to bigger items, especially. Inevitably, this is more expensive than the automated systems, and also can cost more, if the number of items increases. Since more staff and/or overtime might be needed.
Also many of the costs (for Royal Mail), are fixed, even if only 1 letter, or a million are handled. E.g. Business premises, permanent staff, vans/trucks, etc etc.
So the modern trends, of emails/texting, online services (some of which use to be more paper based, and hence letters would have needed to be sent out), have potentially drastically reduced the numbers of certain types of mail deliveries.
E.g. Sending Birthday/Christmas Cards/Bills/Bank Statements by email, rather than by post. Hence the business costs of running Royal Mail, can go up dramatically, as a result (i.e. It needs to cost a lot more to send each letter, in order to still make a profit). They also lose business to competing couriers, such as UPS/DHL/FEDEX etc.
I've not been too happy with the Royal Mail sell off in the UK (privatization). I suspect that is a factor in some peoples disappointment in Royal Mail and/or the (apparently) higher prices, that people have been experiencing.
tl;dr
Ebay seems to have gone BADLY downhill since about 2008, because new management, decided to disallow sellers giving buyers negative feedback, and other later changes, which ruined it for small/medium sized sellers.
But Royal Mail issues, may be as much to do with modern times (e.g. dramatic email usage increases, over paper letters) and modern automation machinery, and hence the economics of letters/small packets, versus large parcels, which may need much more human intervention, and hence costs.