First, ebay sales fee on your $12.50 example would only be $1.09 and Paypal only 66 cents or $1.75 total --- leaving $1.25 for shipping.

IMHO it's really stretching it to say it's only costing 25 cents ea. addtl shipping. Buy 5 chips at the $1 opening, for the lot it's only 45 cents feebay sales (.09 per) and 45 cents Paypal since they're all paid on one invoice --- but it's still $13 to ship 'em! Given 90 cents in fees, leaves you $2.10 to ship 5 (hopefully in the same package)and hey, toss in $1 for packaging - bottomline, to me the remaining $9 shipping is a rip and purely feebay cost avoidance. As far as balancing out in the end?, maybe for you, but clearly not for a buyer of multiple low value chips. Again, just my opinion.