We are ebay power sellers ..... Prior to selling on ebay, I too never understood why sellers charged a handling feel UNTIL we started selling.
First there is supply costs....we bubble wrap each item, use bubble wrap envelopes, packing tape, peanuts, boxes when necessary, paper, ink cartridges,etc. All you do is have to price these things per month and you would be suprised how they all add up! Our bill for all these items to wrap cosmetics are approx $300-400 per month.
If we did not wrap our items 100% securly to ensure non breakage, buyers would complain. If the buyer didn't buy insurance....and their item wasn't packed with TLC and damaged by the post office ....buyers would complain.
Now....if we incorporated the amount of packaging materials in our selling price, ebay would get a chunk of it. When an item is sold, ebay takes a certain percentage of what the item sold for. We believe that when listing an item, the item cost listed is just the item cost. We believe it's not fair that ebay gets a chunk of our shipping/handling costs. If you do order items from a catalog, homeshopping, store for home delivery, there is always handling incorporated.
Also....for some sellers, they have to drive their packages to the post office and wait in line. We use stamps.com to print our postage, but it also costs us a fee. Nevertheless, we still have to drive to the post office and drop off the packages. We obviously can't leave them in our postal box because it's too small, we can't leave them out front of our house due to someone possibly stealing them or the items getting melted. And we are not home, for the postmaster to personally knock on our door to get the packages due to us being at our jobs.
With all this said.....we are powersellers with over 2100+ unique feedbacks and over 3000+ total feedback, with 100% feedback. A rare find. It's because we DON'T do what alot of sellers do which is GROSSLY overcharge for shipping/handling. And we also don't overcharge buyers when they buy multiple auctions. We offer discounted shipping per additional item. We do not believe in ripping off our customers.
My biggest tips to buyers.....if you feel you do not agree with the auctions cost of shipping/handling terms at the time of bidding on the auction...DO NOT BID! If the envelope says that you paid $2 or $3 over than the actual shipping cost, realize there is ALOT more involved than you will ever realize until you sell yourself.