Originally Posted by
deltadelta48
It is kind of a dumb practice as it loses the seller customers and the money is taxable. The way our US tax structure is set up for small busineses, the postage is part of a seller's profit. i.e. on a $5 with $5 postage, the "profit" is $10. Seller must then prove the postage was an expense by producing the actual postoffice receipt. So if the $5 shipping is actually only $2, the US tax service still says the seller made $8 on the sale and allows only the $2 to be tax free as an expense. End of story. Charging too much for postage does not give the seller free money that is not taxed.