Quoted from LongJohns:I personally do not get the whole idea of using gift period. Using gift, the buyer pays the fee, using the goods method the seller pays the fees - so just up the price to cover the fee - the buyer pays the fee regardless. I would assume that most people that insist on PayPal build the fee into the original price (or just eat it) in the first place.
Splitting the fee was nice of you to offer.
If you use the "gift" option and fund from your bank account, there are no fees for either the buyer or the seller. Of course, you have no protection either.