I was co-founder at an ecommerce site, Ruby Lane. We initially launched with a commission model also, but after a few years of pathetic income with hundreds of

I was co-founder at an ecommerce site, Ruby Lane. We initially launched with a commission model also, but after a few years of pathetic income with hundreds of dealers, switched to a monthly listing-fee model. We lost many dealers from this, but it put us on a path to profitability within a couple of years. The advantage of a listing-fee model is that your site is paid for displaying and managing the online product listings - not for selling them. If your listing fee is reasonable (ours was a quarter a month), sellers with high-quality items at reasonable prices will do well and will make more money than they can on a commission site. You can let dealers and users talk with each other however they want, going so far as to publish dealers' email address if they choose. Commission-only sites tend to have lots more listings, but they also tend to have higher prices and junkier items, because there is no disincentive against these; listing fees are that disincentive. As you have success with this pricing model, you can modify it down the road. For example, for example, charging higher listing fees for more expensive items. Good luck!