I hope the people doing this realize that they are risking losing their PayPal account permanently. If you sell something, be prepared to handle it professionally. If fees are that exhorbitant to you, then take them into account with your asking price. I can understand an occasional seller perhaps not knowing the rules, but a regular seller doing this is just a cheat. Not only are they cheating PayPal, but it is also most likely to get out of paying taxes on that income now that PayPal reports your sales income in the US.