Thank God some people understand!!
To those of you who think I am wrong by "keeping more in shipping and handling" would I still be wrong if I priced the items higher and I included the additional 3.50-7 in the price? Would you still expect me as a seller to go ahead and cut the price in half just because you chose to continue to bid on my items at the prices I listed them at?
No, nobody would expect a winning bid value to be reduced. But pricing the items higher to start with would be the better thing to do in my opinion. People don't have to bid. Someone who was willing to buy the item for a higher price would, presumably, bid on it. The only issue is that most buyers are funny about postage and do expect things to be combined for a fair postage price if several items are won from the same seller.
That being said, I do agree she should have checked in advance. I always do this, as it is both rude and entitled to just assume it will be done.