Shipping and handling: model 1 - free shipping

OK, yeah I know. There's no such thing as free shipping.

Most people do one of two things to offer "free shipping":

• Bump up the price to help cover the costs, or
• Eat it, which is more common than your think, especially with small light items that only cost a buck or so to mail.

If you decide to do the bump (the price, not the dance), then you really need to be reasonable on what the bump should be. In my opinion, the bump should never be more than the actual shipping amount - as in what the PO or UPS or Fedex will charge you. Don't nickel-and-dime your customers to death with built-in charges for gas, supplies, your time, etc. Be fair (to the customers), be reasonable (to the customers) and your sales will do fine. Overcharge, and I can guarantee they will find other places to spend their money.