Paul,
I have only bought two things off of Ebay but I have sold thousands of things. I started selling a year before I bought anything, so I guess I came from a direction that many people don't come from. I have also been in the vending business and the Pizza Business, so those instances affected me too.
If I was you I wouldn't worry about the shipping cost. Only worry about total costs. To me it is a pain to ship only one or two chips. To that end I tend to charge high for one chip but then discount bigger orders and wholesale orders. So IMO selling one chip for $4 with shipping isn't all that worth it, but selling 328 Las Vegas chips for $516 (Free shipping) was worth it.
Personally I take checks and MO's.
JMO,
Byron
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