Why in the world do sellers inflate their shipping prices so much. I was looking at a pair of MUDD jeans for my DD the seller has them listed for .99 but then the shipping price is $8.95
They probably are charging that much because they plan on shipping the item in a flat rate priority box. (that is roughly how much it would cost to do so)
And, I Just wanted to pipe in as an Ebay 'power seller', in regards to fee avoidance issues and shipping costs.
As far as low starting prices and listing fees:
We now start EVERY auction at 99 cents. Many items end up selling for over $300. Why start so low? Because we let the market decide the value, and let me tell you...it works out well. It makes NO sense to me to list an item for what 'I' think it is worth because if others do not agree, then I am out larger listing fees and still have the item sitting on a shelf. The difference for me, as a seller, is that I am not selling things that have personal value to me. So, if I only get 99 cents for an item, oh well.
Shipping:
We start all smaller items at $9 shipping. We recently decided to switch to flat rate priority, for items that will fit in the boxes. (The new 'flat rate priority' the US post office is now offering is why many people are seeing $9 shipping on ebay, btw)
For some reason, most of our buyers are from the west coast and we have been burnt so many times on shipping that flat rate just makes more sense to us. Even if the item 'could' be shipped for less, it is a guaranteed fixed rate for us and fast shipping for the buyer. Also, since I am starting auctions at 99 cents, I am definitely going to go with a fixed shipping cost so that I am guaranteed not to lose money on a 99 cent sale.
And I am not spending all of my time figuring out what actual shipping would be for 'potential buyers'. This is what happened when my listings did not include a fixed shipping rate. And I am not going to argue with buyers about the most economical ways to ship. All of my auctions go usps flat priority with delivery confirmation (smaller items) or UPS ground (larger items). I do combined shipping whenever possible.
I also find that more people bid on auctions that state the actual shipping costs up front. People do not want to get burned later when they find out how much shipping will be, after they have already committed to buy the item.
Bottom line, I am not out to pull one over on the buyers, but I am also in this for profit. Even if the profit isn't large, I am not paying for people to have my stuff. I feel that shipping costs being upfront is the best way to sell on ebay and since people have the right to not bid on my items, I do not think it is unfair to ship things for a rate that may be higher than it could be.