Yeah, its pretty sad when you have to mark up shipping just to break even.
Don't forget your PayPal fees as well.
I'm with you Justin. If I can strike a deal off-line with people I do it every time, especially if I'm the seller. It saves you a TON in fees.
See, I'm almost with eBay on this... you're not 'breaking even' by marking up the costs. You're just making more.
When you sell something, you do so knowing full well that the cost of using their platform where you have access to millions of potential buyers is that you pay their fees. That's just the cost of eBay. If you don't like that, you're free to use Craig's List or have a garage sale.
I think eBay does a lot of dumb ****, and obviously they're pushing the percentage that they charge and at some point they'll need to increase profits on volume instead of fee percentage. The charging a fee on shipping is because people were charging $2.00 for an expensive item then asking $30 to ship to avoid fees.