"buyer should still pay usps rates as it's been."
1. It hasn't always been that way on eBay, that buyers are "defaulted" into paying USPS retail rates.
In fact, my selling ID has never listed an item that shows a USPS retail rate. I have always chosen to reflect eBay's reduced postage prices.
2. Whether a buyer "should" pay the USPS retail rate regardless of what postage rate the seller pays to eBay is a philosophical question. Again, my selling ID takes the position of passing those eBay reduced postage rates on to the buyer. I believe that is honest and fair to potential and actual buyers.
However, I also add a handling charge when I create my listings; it's part of my "shipping policies." Usually, it is a very low amount, 75 cents; for one heavy and larger item, I did increase the handling charge to 99 cents.
"the discount was for seller's benefit and shouldn't be used to 'attract more buyers'. "
Of all the ways of attracting business, I think passing savings along is a great way to attract buyers.
When I was young and working part time in a formerly major (now defunct) department store, they would occasionally have "special purchase" sales, where the store acquired inventory for low prices, and then sold those things at a lower mark-up. They were usually successful sales.
Sure, in the B&M world, there are always stores who have big sales and give away free balloons for the children, or maybe their kid's garage band playing for free. But internet commerce can't depend on some of those bells and whistles that the B&M world can use.
