I have no problem with the seller covering listing expense, commission, mailing (which is 60c as far as my experience) and the 15 cents for a mailer.

Gas, scanner costs, and lunch are on the seller.

Two dollars is not out of line or excessive.

Going along with Andy's answer, if you don't like the shipping cost, don't buy the item. I have seen chips and postcards with shipping OVER $3 and I just let someone else pay the elevated shippping costs.

Personal opinion, $1.85 is not excessive. Whatever you buy from a store or a supplier, has the overhead included in the price. Just because it's hidden, doesn't mean you aren't paying for that "free" shipping.

Most of my auctions and all my sales/trade lists have prices that include shipping, so that removes the question. So if someone looks at the price and doesn't take this into consideration, I eat the shipping. No big deal, since I'm in this for fun, not for profit.

What's the difference between charging $3 for a $1 chip, including shipping and charging $1 for a $1 chip and $2 for shipping? Sematics!