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Russ Brightit used to be a common practice to have things selling for a penny and paying 20 dollars shipping - that way the sellers got around the "final value fee" and Ebay got screwed out of their money - not that i cared that Ebay was losign money, but there were a lot of people as well who thought they were getting great deals and ended up paying more than something was worth -
I have people complain about my shipping ($3.50) all the time - and i explain that I use a padded envelope ($1) and paypal shipping with confirmation (1.50 or more + .18 for confirmation) and then gas to and from the post office/mail box - that generally helps -
my wife just started selling on ebay recently and had a guy ask if she could make shipping any cheaper - shipping was $2.00 - really, if you just want me to throw it in a white envelope with a stamp and pray, sure...
I have found some great deals that i passed on because i felt shipping was too high