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Remember ebay sellers are not always just kids trying to sell junk they find in the basement, most ebayers are running legit businesses from their homes which can incur just as much cost than a business who leases a building.  I am going to give you a quick rundown why shipping charges on ebay and other business can be higher than the actual cost to ship the item.

(SHIPPING - HANDLING - PACKAGING - PROCESSING) - this is what you pay for.

1.  Cost to ship. (possible tracking number or insurance cost)
2.  Cost of packaging - (envelope / box / tape / labels / ink- that includes the material and even the amount we pay to get the materials shipped to us (seller)
3.  Processing - (time is money, also time it takes to fill out forms, customs forms, insurance and tracking forms).
4.  Handling - Storage of the item, taking item to the post office (gas,time).

So when you see shipping and handling you are most likely going to have to pay these fees, this has been a normal business practice since mail order started.  Remember to check these charges before you bid because once you bid it is a binding contract between you and the seller.

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