What is going on? I have felt a dramatic drop in sales and interest on ebay.

I can only think of two contributing factors:

1) ebay's compulsory rollout in March 2021 to direct payments for small sellers (like myself) without a store meant an actual INCREASE in fees rather than a decrease in fees. 

2) An recent increase in Australian postage

I have become disheartened. I personally stopped listing many new items after these increases. Simply put, Ebay's cut and postage is currently unrealistic for small fish like myself. 

If others like myself feel the same way then this means that there are less new products listed on ebay ---> this reduces the random clicks through search engines ---> less visitors on ebay and less random sales for bigger sellers with stores too!  

We must remember that Ebay is "one organism" when the weaker parts start to suffer the whole system starts to fail.

On top of that- although it is still early days- I think the wind of change is blowing over Ebay but also Amazon Aus ( a joke IMO) and even Facebook: they are fast becoming a "granny's platform" according to younger generations. Ebay feels to me like it's losing momentum. There is a fine line between treasure hunting and the expectation ebay buyers have nowadays to buy things at unrealistically low prices.  It cannot happen anymore. Something must change, I sincerely hope it does.