Ok, everybody covers their ebay fees some way. Nobody is in this to lose money. Either your price is higher than it would have normally been, or you charge a handling fee. I have tried it both ways. I listed the same exact item for $0.99 with a $2 handling fee and for $2.99 with no handling fee. The $0.99 item sold. Nobody even looked at the $2.99 one. Same total price in the end. I have done this numerous times with the same result every time!