I gotta say I am getting there,
Just got yet another “your shipping rate is too high”.
3.75 is too much to charge for shipping.
Lowest price for shipping USPS GA, Lowest fee for that is 3.76, Envelope cost $0.14
Lowest possible shipping cost to us 3.90 charging 3.75 is too much though.
You are literally losing money on COST, but yeah, you’re charging too much SMH 
You are actually subsidizing the customer’s cost.
You should offer “free” shipping and roll the shipping cost into the product cost.
As stupid as it is, if you don’t offer “free” shipping people will whine about it.
That is what I have been doing. Raising the price $5 so I don’t charge too much by charging $3.75 for postage.
I have had to stop offering Expedited on most items because $9.99 is too much to charge. (A USPS flat rate envelope is I think 8.75 so after Amazon’s cut I have $8.50 left)
Don’t even get me started on 2nd day and overnight where it can cost us $100 plus to the west coast. Charging $50 though is too much according to Amazon.
[quote=“GGX, post:12, topic:3959”
As stupid as it is
[/quote]
I swore (one of my finer points) a lot that I would never do that and then a light bulb clicked on and I’ve been converting everything.
As @Thelunatick notes, raising the price by MORE than the cost to ship makes all those "free shipping’ snobs pay a bit extra.
The OTHER benefit is when people buy multiples of an item. For every one it’s a $5 bonus that only costs a couple cents (if any at all) to ship. My average package weighs 4 ounces with room for multiples.
That’s how I do it. Roll the price in and charge free shipping. Since I can ship 2 to 4 items for the same price as 1 then it allows me the freedom of “buy two or more and save 10 percent). Customer feels good about getting a “discount” for buying more than one and I still make money 
This. This is how Amazon hurts consumers and tries to shove FBM Sellers into FBA.
ONE:
Higher prices to avoid a bot that dings Sellers for losing money.
TWO:
Fewer shipping options because Amazon dings Sellers for charging actual shipping costs.
Well, part of this is consumers hurting themselves. The number of people who won’t buy something that has a shipping cost if there’s a site with “free shipping” isn’t insignificant.
Usually the supplier that’s the lowest cost for something will charge shipping because bundling everything together usually results in an inflated overall price.
I use a ton of disposable plastic containers so I started ordering them from a restaurant supply store, even with a $20 shipping charge on a $20 item (since they’re bulky), that’s $40 total compared to a cost of around $60 to buy the equivalent quantity from costco with “free shipping”
I don’t disagree, just pointing out the Amazon-specific (typically bot-driven) processes that lead directly to higher prices for consumers on all platforms (because FBM Sellers have to then raise other online prices or Amazon will no longer feature their Amazon offer) or limited shipping options.
We offer expedited for $10.95 which goes out Priority Mail Flat Rate envelope (regular size) and costs $7.99 through Amazon Buy Shipping. Currently for us, 9 times out of 10 the Priority Flat Rate envelopes will have the same estimated delivery time as the Ground Advantage. Maybe having the selection makes the customer feel better … don’t know … so we continue to offer because some want it.
I raise it by a bit more than the average cost of shipping the item. The people right next door overpay a bit, and the people on the other side of the country get the shipping at a bit of a discount, but I’m covered and I don’t have to raise my prices by so much that I lose sales.
When I offered free shipping on Amazon, this is what I did. I estimated typical closest charge and typical farthest charge, averaged them, and rounded up to the next dollar. And that’s what everyone on Amazon was charged, for each item.