Oh, it gets even worse than that... Chinese sellers ONLY pay transaction fees, no listing fees. Just offering an item, an American seller is at a deficit. Additionally, almost every Chinese seller fakes the value for customs, thus buyers don’t have to pay duties - particularly important for UK and EU buyers, where duties can be as much as 40% of the value of the item.
Oh, yeah, EU import duties are horrendous. Those buyers have almost completely disappeared from eBay.