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My question is did it state in the auction that it was a flat rate cost or a calculated cost? If so, then you agreed to that amount in the first place and eBay would take the seller's side on this one, sorry. It's possible that they calculate not only the shipping cost but their eBay fees into the shipping cost, as a lot of sellers do. Unfortunately, the fees aren't that cheap.
Should I open an ebay case? Isn't it a bit extreme for £2.75?
I'm with CupidStrikes. eBay makes seller's pay fees on shipping, too and not just the listed item. That could account for some of the overcharge. As a seller, I always try to overestimate shipping by about $1-2 (depending on package size) to cover what most people call "handling." This is my packaging materials, fees, and a slight cushion in case I underestimated package weight by a few ounces. If I don't do this, I break even or even lose money on some items. So, I doubt that your seller came away with much pocket money from the shipping. Some sellers don't try to work in the necessary fees in the item price because that can deter some customers. If a pony is "worth" about $5 but they are selling it for $8 to cover all the fees, lots of people will pass it up to look for the $5 pony even if the shipping is higher! It's just a game sellers have to play to try to find the right combination of attractive price and actually making a little profit.I also agree that they should message you back, though! Not cool! And a better pack job certainly wouldn't hurt.
I'd knock the stars way down and leave a neutral. As there were no problems with the actual item, the method/time/speed of shipping, etc. I wouldn't think it warrants a negative... But often I find that the difference between a neutral or a neg is how much the seller annoys you, if you feel emotionally that a negative is fair, then go right ahead. Wilfully lying and not communicating promptly are pretty bad tactics for a seller - they could just have said that it was for packing materials and transport/handling costs, or even paypal fees, that would be understandable. No need for lying about insurance when it's something that can easily be disproven by looking at the label.