Not excessive, but $3.50 is on the higher end of what most people consider "normal"...so it doesn't surprise me that you're getting knocked a point or two. Not that I necessarily agree with it...just that it doesn't surprise me.
89c per mailer is pretty expensive - try buying them in bulk (on Ebay you can get 100 for $13-14 - or 13-14c each. That would cut a good 75c off your handling costs).
Also play around with different pricing models - if you're starting a card for $5 with shipping of $3.50; try starting the card at $9 with free shipping instead. Even though the latter costs the buyer 50c more, you'd be surprised how many less people will complain about it vs. the former. And if memory serves in some cases you'll get an automatic "5" with free shipping (check Ebay for the details - I don't know them off the top of my head)
89c per mailer is pretty expensive - try buying them in bulk (on Ebay you can get 100 for $13-14 - or 13-14c each. That would cut a good 75c off your handling costs).
Also play around with different pricing models - if you're starting a card for $5 with shipping of $3.50; try starting the card at $9 with free shipping instead. Even though the latter costs the buyer 50c more, you'd be surprised how many less people will complain about it vs. the former. And if memory serves in some cases you'll get an automatic "5" with free shipping (check Ebay for the details - I don't know them off the top of my head)
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