Agree that charging 3% on Paypal transaction erodes trust. When I see that I also worry that they will nickel and dime the packing material, boxing, etc.
A fair amount of sellers also won't provide a shipping cost until you commit to buy as they want to make sure that they pass on actual cost to consumer. However, this creates friction as the buyer wants to know what they are paying before they commit.
I think it's simply basic economics, supply and demand where the demand isn't there at the moment and the main thing that drives demand in most markets is either a shortage of supply or a reduction in prices. In other words there isn't enough of a product people actually want , supply, or there is to much so you have to reduce the price to increase demand.
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