Postage settings can be applied directly from your Paypal account. Go to ‘Profile’, then ‘My Selling Preferences’ and ‘Postage Calculations’

Paypal offer two ‘Cost Method’ options for postage charges:

Flat Amount:

Calculate a flat postage rate based on the total amount of the purchase. Or,

Percentage:

Calculate the postage based on a percentage of the total amount of the purchase.

Whichever you choose, PayPal then gives you up to 5 customisable tiers of cost and price ranges which you can enter a postage cost for. For example, if you choose the flat postage rate option, you could use the following settings:

£0.01 – £49.99: £5.00 delivery charge
£50.00 – £99.99: £9.00 delivery charge
£100.00 – and up: free delivery

Similarly, if you choose percentage of sales:

£0.01 – £49.99: 10% of total
£50.00 – £99.99: 8% of total
£100.00 – and up: 6% of total

You may also allow individual transaction-based postage values on certain items to override the profile postage settings listed above.  This is because you may want to offer a service and not charge any postage at all, or it is ideal for really small/light or really heavy/bulky items which the flat rate wouldnt be suitable for.

Postage will be applied to all PayPal Shopping Cart Purchases, Buy Now Buttons, and Donations as per the settings above.

Postage will not be applied to payments made with PayPal Subscriptions and Recurring Payments, Winning Buyer Notification, or Instant Purchase (for eBay listings).

Although PayPal doesn’t offer every shipping option an online merchant may want ‘off-the-shelf’, you can always box clever and approximate your postage costs or even amalgamate (some or all) into the actual product cost, you just need a little creativity.  This may work out a lot cheaper in the long run than switching to a 3rd party merchant that you have to pay a monthly subscription to, in addition to your transaction fees.