I'm afraid your choices may be limited.
I think you need to choose between paypal and 2checkout. Yes, their charges may seem steep if you are selling goods that in themselves don't cost much.
Perhaps you can sell in bulk?
I don't know what your product is; could you offer your customers a deal of the product in bulk for 80% of the cost? You know, offer incentives for them to buy more than one of your product.
Or, you could calculate how much you would end up paying per product with both paypal and 2checkout then raise your prices just enough to cover these costs? If it is a low price product anyway, you can surely afford to raise the price by a dollar or what have you.
Also consider that perhaps you are not putting the correct price on your product! On my site you can download an ebook on how to choose the right price:
http://www.website-copy-writer.com/m...rice-sell.html
Good luck
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