Fee Circumvention

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Sellers can add reasonable shipping and handling fees to the final price of their item. A shipping and handling fee can cover the seller's reasonable costs for mailing, packaging and handling the item. Shipping and handling fees can not be listed as a percentage of the final sale price.
It costs Jennifer $7.55 to ship an item.

$4.05 postage via USPS priority shipping
$1.35 for insurance
$0.50 for delivery confirmation
$1.65 for packaging the item, which includes the box, packing peanuts and bubble wrap.

She would like to charge the buyer a flat rate of $11 for shipping and handling charges to guarantee she'll make her money back on the actual shipping costs, in addition to fees covering time spent packing the item, printing supplies, gas, and time spent waiting in line at the post office. Is this allowed?

a. Yes
b. No

That's right! Jennifer can only charge the actual amount it costs to package and ship the item. A small handling fee may also be applied for the amount of time spent packaging and preparing the item for shipment. However, any additional fees associated with printing supplies, the cost of gas, or the amount of time spent waiting in line at the post office should be built into the starting price of the listing. Such fees are associated with the cost of doing business, and are not considered part of the handling fee. Jennifer is not permitted to include the cost of business in the shipping and handling charges, since this is a form of fee circumvention and can be misleading to buyers.

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Question: 4 of 11
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