I often hear from eBay sellers that they only ship to the lower 48 - they don't ship to Alaska or Hawaii. There really is no reason to exclude Alaska and Hawaii - it is no more expensive to ship there than to any other state.
First Class and Flat Rate will be the same regardless of the destination. Calculated Priority and Parcel Select may cost a little more to go to Alaska and Hawaii - but as long as you set the shipping so that the buyer pays, it won't cost you as the seller any more. And remember your eBay shipping discounts - large or heavy packages often receive up to a 40% discount.
During a phone consultation last week with eBay seller Charmane who runs eBay Store YouStyle888, I got to hear first hand how frustrating it is for eBay buyers living in Hawaii to purchase from sellers on the mainland. Charmane explained that as a buyer, she often finds what she needs on eBay only to learn that the seller won't ship to her. Hawaii residents deal with a higher cost of living than most of us, and they often look to eBay to find deals. They may find the perfect item but then discover that the seller excludes their state. Back to square one.
Alaska is a little bit different situation as there is limited shopping and many people live in rural areas so they depend on the internet for shopping. Mail may not be delivered every day due to severe weather, but it gets there. According to this article on the University of Alaska's website, online shopping is a preferred way to get supplies for many Alaska residents.
If you are not shipping to Alaska and Hawaii, there is no reason not to. Hawaii has 1.4 million residents and Alaska has 736,000 residents. That is over 2 million people you aren't reaching if you exclude these states.
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I just shipped my first package to Guam last week. I was shocked to learn how cheap first class postage was, although I shudder to think how long it'll take to get there. It's tracked and insured, of course.
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