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If it's value is under $100, I add SmartPost to the list through ebay.  Ya, if it fails to arrive, you're pretty much out the price of the set, but I've had a good record (knock on wood) with the service and the savings would pay for this missing sets.

If it's over $100, I go with FedEx Ground.

I ship a lot of non-LEGO items via padded flat-rate priority mail envelopes, but I wouldn't put any LEGO boxed item in such a mailer. ~$6

Minifigs can go first-class-package in Kraft bubble mailers. ~$2.70

Very small sets ($10-ish) can fit in a small cardboard box and go USPS First Class Package if under 16 ounces.  $4 to $5 typically.

Flat-rate USPS Priority Mail (~$11 for medium box and $15 for large boxes) are great for dense items.  That doesn't typically include LEGO, however.  For their volume, I find that most of my sets are shipped cheaper via a ground service.  But I'm also on the west coast and many customers are on the east coast.  If you are on the east coast or even midwest, you can get decent zone discounts on priority mail.

I recommend packaging your sets in plain cardboard boxes in advance of listing.  Weight and measure them.  And if you are using ebay, give options in the shipping calculator for SmartPost, FedEx Ground, and Priority Mail (non flat-rate).  Then your customers can see the options based on their distance to you.

BTW, unless I plan to ship USPS First Class or Flat-Rate Priority Mail, I don't offer free shipping.  Trying to average out the shipping ends up biting me since I'll lose sales to local buyers who go with the calculated cheap shipping of others and end up shipping most everything coast-to-coast.  I've had fewer buyers from the east coast as a result, but I've been able to charge decent prices without free shipping and still attract buyers.

 

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1 hour ago, Bricklyn1 said:

 

What the best way to ship/lowest cost?

 

Live and Learn.  It's the best way to truly figure it out.  Talk with your post office guy too.  They are usually (at least mine is) willing to discuss best ways to ship and where thresholds get it.

Also, when you make your first Ebay sale as an example, play around with the calculator before purchasing the shipping.  See what limits push the cost from 10.95 to 18+.  

You'll find there is a leap from 8 oz to 9 oz as an example for packages.

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