Make money off S&H?

[moto-m]

What is the name of your state? Florida

I have been researching a business idea. The idea involves offering a free product for a limited time through a direct mail campaign (flyer) and charging only a $2.95 shipping and handling fee. The $2.95 is enough to cover all expenses and make a profit (I hope). Is this legal to offer a product for free and charge a somewhat inflated shipping/handling cost to make money? What about the issue of sales tax?

 

[JETX]

Yes.
S/H is not normally taxable, but check with your taxing authority since they may make a special application in your case.