$1 chips free... postage $3 each?

I'm seriously not worried about somoene charging two bucks for postage or even $2.50 if they feel it's necessary, but above that, I'm not bidding = OR I will adjust my bid down to compensate for the excessive shipping.

If I pay $4 for a chip and $1 for shipping or $2.50 for a chip and $2.50 for shipping, it's still $5 no matter how you try to slice it.

Am I worried about ebay losing commission on $1 in shipping that could have been sales. NO!

You are correct that someone charging $4 for shipping should be sending things Priority or they are selling handling charges, not chips.

Some people have no idea about what they are doing with the shipping charges and just pull a number out of the air. OK hmmm, $4 sounds nice, ya that's the ticket, envelope, stamps, scotch tape, staples, I'll charge $4 for shipping...

But honestly you don't have to look far on eBay to find people price cutting and charging $8 for shipping, which brings it back to what the rest of the sellers are asking. It's just a fineagle factor.