The classic bugaboo in Ebay purchasing is inflated shipping.  This is such an innocuous thing that it sometimes gets lost in the shuffle of fraudulent sales, bootleg items and so many other forms of fraud that regularly occur on Ebay.  However, inflated charges are not the only shipping trap to watch out for when purchasing on Ebay.

First, to the classic -- You buy a CD or DVD and pay $5 for shipping and handling.  Understand that Media Mail (the shipping method used by most sellers for such items) currently costs $2.13 for the standard CD or DVD.  Ironically, 1st Class postage is about $.40-.50 less (yes, less!).  Even assuming Media Mail and allotting $1 for the jiffy pack, we're talking just over $3.00.  If by "handling" a seller that happens to be a large retailer/wholesaler is allocating funds for staff that actually works in fulfillment of a large volume of orders, then I guess such an allocation can be deemed reasonable.  However, for the typical at-home seller, "handling" is a euphemism for "bottom line".

Second, "If not perfectly satisfied, we will refund your purchase price".  Most buyers don't get beyond the satisfied part of that sentence.  But note what it is exactly the seller is committing to refund:  Your Purchase Price.  This means that even if you are dissatisfied, e.g., the product is not what you thought it was or what was advertised or it comes damaged, you will still eat the shipping costs...both ways!

Third, there are cases where actual delivery is only guaranteed if the buyer elects a shipping method that allows tracking or provides a reasonably high assurance of delivery, e.g., Priority Mail.  This is often in small print and the shipping costs (including the over-charging) increases geometrically as one opts for these higher-end shipping options.  Note that this does not eliminate the risk in #2 above and certainly just exacerbates the problem in #1.

Fourth, volume discount shipping should really be called "catch-up".  This is because the initial shipping rate is usually so high that even the seemingly discounted rate for subsequent items still permits a hefty profit on the shipping charges.  There is no real ability to reach a legitimate volume shipping rate.

So when you are buying an item pay attention to shipping policies:

1. How much is being charged?  Most small items can be shipped for less than $2.00.  Allowing $1 for packaging and most small items should come for less than $3 shipping.
2. Is handling charged?  If so, how large is this seller, e.g., a retailer you know (such as Sharper Image) or perhaps with 5-figure feedback indicating a very large volume of business?
3. Will shipping be included in any refund?  If not all, what are the exceptions?
4. If you are looking to buy multiple items from one seller (and hopefully not just for the sake of a shipping discount!), what does the "discounted" shipping really mean?

If we are to be truly clever, selective Ebayers, we should learn to watch the shipping.  Nailing the "steal" price on any item is a pyrrhic victory if we lose our proverbial shirts to exorbitant shipping costs.