Hi Shari,
I am a new seller and I have always sent small packets with surface since the Canada Post standards only say a 1-2 day difference.
My DSR's for Shipping time go between 4.8-4.9, the lowest was 4.77 but that was for 1 day only.
I am however going to be changing all my listings to offer both air and surface in the next month because I saw a seller doing that and her dsr for shipping time was consistantly 4.9.
For handling, I only charge a modest 50 cents which really only covers the envelope... The rest of the supplies I try to get for free (hubby will "borrow" tape from work lol) or I eat the cost.
For very large orders not using the flat rate box, I will add $1-2 dollars handling for that pesky paypal fee.
Justine
Love Bug Universe