If you use eBay shipping or PayPal, the package rate for 1 to 3 ounces is $1.64 with free delivery confirmation (this is actually a slight reduction despite the January rate increases). Keeping in mind that eBay tacks on 10% for its fees, I would say that a shipping charge around $2 is appropriate. I usually charge between $2 and $2.25.

I heard there are consumer studies that show that people expect to get ripped off on shipping and don't care about anything under a certain price point, but I don' know if that's true. I know at one time a lot of bidders never paid attention to shipping rates until after the auctions had ended, which led to disputes and eBay's full disclosure policy.