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Totally different products and costs, but I was flat packing some furniture at one stage which ranged from between $30 and $50 shipping, I did an experiment and made some free postage with the shipping cost included in the overall price, and some with shipping extra. The result was totally inconclusive as I sold about 50% via each method.
Personally I settled on your other option of lowering the shipping fee to $20 I think it was, so there was still some shipping, and burying the rest in the sale price.
But I wouldn’t be going down the option you suggested of just wearing the cost, as thats not good business practice.