I love analysing the stats on my new online shop because they tell me things about customer behaviour that I haven't known before. For example, the percentage of people who add notebooks to their shopping cart is much larger than the people who actually buy notebooks.
So I wondered, does that mean people are balking at paying an extra $2 for shipping and opting out of the purchase? Quite possibly.
Small parcels have relatively low postage costs and I've decided that I can absorb them into my business if it means more sales. So go forth... anything up to $25 will now ship free and you can get quite a lot for that.