Ultimately, the seller is just much better off deciding on a price that includes shipping. Buyers do understand in the back of their head that shipping costs money. The "free shipping" label on your ad goes a long way in conveying that, and also is a great marketing tool. Most people will see the "free shipping" and excuse a price that is higher than the next guy's price that has extra charges for shipping. Obviously, retailers understand this and that is why such an overwhelming percentage of new items for sale online have free shipping. Do retailers take a bath and lose money on the shipping? No! They calculate it into the price and it works because all of the other retailers are doing it too. Private sellers shoot themselves in the foot and taint the market when they try to list their item at a price that will beat other listings but then slam shipping fees on top. Include the shipping in your bottom line selling price and list the item with "FREE SHIPPING"... most buyers are not stupid, they shop on total price and are not fooled by a seller trying to lowball a price only to charge for shipping.