You make a couple good points about the pricing of items on eBay. There is no question that there is a cost for the convenience of being able to find almost anything you want. I often buy memorabilia from the high school that I went to. The school has since been closed and torn down. I can run the name of the school through eBay and almost always find something whether it be an old yearbook or a uniform insignia etc. Also, my Godfather used to play for the Chicago Bears in the late 30s and early 40s. There is usually stuff relating to him. You can often find almost anything, no matter how obscure it is.

This discussion has come up before though and the general understanding is that the expenses that you mention should be included as part of the listing price on the auction not the S/H. Therefore, if you are selling a new $5 house chip that you picked up yourself, you should start that chip at a minimum of $5.30 (based on your example). I don't understand all the strategies of online auction pricing but I have noticed that many will list for $1. Maybe they are doing that to get attention, like pricing at $19.95 instead of $20, and are confidant that the price will ultimately exceed their actual costs. The 5.25% commission is in relation to the amount over your list price and up to $25 if I understand it correctly. That is related to the amount of extra or profit that you are receiving and is eBays way of sharing that profit in exchange for the service they provide. Therefore, I think it is inappropriate for that to be in S/H. S/H should be to cover the expenses of getting your item to you. That would be Packaging, Shipping, Delivery to the Shipper etc.