Awhile ago I used to sell a lot of consumer grade electronics on eBay, and one of the first things I noticed was that people were generally willing to pay more to have free shipping. $X+$Y shipping could easily turn into ($X+$Y+20%) + free shipping, and people would do it to themselves -- I'd start iPhones bidding at $0.99, and without fail I'd drum up a ton more business than I ever could with substantially lower fixed prices and accurate shipping costs.