Fly_n_Buy makes the point that eBay sellers have additional costs to ship/handle an item to a buyer.  But so do brick-n-mortar stores.  You make a profit on the item, you shouldn't (as many eBay sellers try to) make a big profit on the ship/handling.  Yes, you have time involved to package it, tag it, drive to postoffice, etc, but once you are organized and set up this overwhelming task to deliver something isn't a major effort and when you have many buyers the time to service them can be done in a single sitting.  What is the cost of a box of labels, pens, inkjet cartridge, envelopes when bought in bulk.  What is the extra cost when you drive to the grocery store for your own needs and stop at the post office on the way.  It doesn't really cost $6 to $10 to ship one DVD or even a set of DVD's and yet many sellers charge the same S/H fee for the additional item with a buck or two knocked off.

Get real.  Do retailers charge you for the cost and time of the stockers or cashiers to process and bag the items?  As sellers, you are making a profit on the items and you should charge only enough to cover the ACTUAL cost to send it.  Divide up the total cost of bulk labels, pen, ink, envelopes, etc, and it should be negligible if you're a savy business person.  If sellers charged the non-profit actual cost of shipping/handling I'd be buying a lot and much, much more often.  I'm sure many other buyers would do the same.  Of course you can stick to your crying that you spend your time to package it, etc, but you're running a business and you don't have the other overhead costs that actual brick-n-mortar retailers typically have.  Some retailers also use the same argument of time, etc, and also try to make a profit on S/H as well, yet many of them often offer free shipping or reasonable fees.  I and others I know usually avoid buying from those that gouge on S/H and look for retailers that aren't trying to profit on both sides of the transaction.

Be honest, when a customer buys additional items, how many of you sellers charge almost the same additional S/H for items like DVD's, etc, when the S/H costs to include it are already paid for from the first item where you've also made a profit on that fee.  I've been in retail business and as far as eBay sellers goes, you've got an easy low cost business environment to operate out of and trying to rationalize charging the high S/H fees many of you do is just being greedy.  You have no clue how many sales you are losing out on because many of us refuse to pay such high fees that we know don't cost that much since we've also mailed items ourselves.  But go ahead and keep your S/H fees high.  Many of us will keep shopping elsewhere.