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This was a big problem a few years ago. But eBay realized that it annoyed buyers who didn't get the bargain they thought. More important, eBay was only collecting fees on the penny sale and not on the inflated shipping charge.
So, now eBay charges fees on both the item and the shipping.
If a seller charges $0.01 for the item and $10.00 for the shipping, he pays fees on $10.01.
If a seller charges $5.01 for the item and $5.00 for the shipping, he pays fees on $10.01.
If a seller charges $10.01 for the item and Free Shipping, he pays fees on $10.01.
The fees run about 20% of the total paid by the buyer.
However, most people don't realize how expensive shipping actually is. You can send your great-aunt in Kamsack SK a birthday card for 85 cents, but if you send her a paperback romance it could easily cost you $12.00. If you send her the hardback copy of Fifty Shades of Grey that she really wants, it will run you more than $20.
