The buyer pays YOU for the shipping; whether you use a 'flat rate' price or 'calculated' and/or you 'add' a 'handling' charge- then YOU purchase the shipping label.
Example; shipping is charged $10. You used Calculated (because the further from you, the more they pay) and then YOU added $2 for a 'handling' fee, you would then collect $12. If the 'real' price you pay for a label is $7, YOU pocket that extra $5 (not counting ebay Final Value Fees)
The REASON they charge you on the FULL amount is because
1.) they can
2.) they want to
3.) they are MORE than transparent about it
4.) Stores have ALWAYS been charged on the Full Amount at the register, so a $1000 sale with $88 tax, the store would be the 'processing' fee on $1088.
5.) They do this for 'shipping' as well because again, the Processor charges for the FULL amount. You could be charging $25 for shipping and only paying $10, so you will pay a fee on that entire $25..because of reasons 1,2 and 3 above.
