Listen, I've already admitted that I have trouble with shipping, especially those overseas orders. Who wants to pay $80+ to ship UPS (with REAL tracking)? Nobody!
I beg to differ.
Companies produce their items from their facilities, and are either centralized (i.e. one facility for orders, invoicing, production and shipping) or through a decentralized method, whereby they have multiple locations, drop-shipping, etc. etc. If these companies are a small operation, they look to ship within their local geographic, or else they seek to ship with a recognized shipping company to 'get it there'. Depending on your area, that could be UPS, FedEx, etc. (I'm in Canada, and work for Canada's largest Courier Company, Purolator Courier.) If companies can meet certain shipping minimums, they can get a major discount through these companies, thus making their shipping cheaper. (Most of these discounts are usually much higher than 50%, btw.)
People pay for shipping every day, and happily, so that they will get their packages in an acceptable amount of time. I've dealt with many different companies, and can tell you that companies don't take the shipping on themselves - it's not smart business. In fact, most companies will take the discount provided by the Courier Company, apply their own 'handling charge', usually by way of percentage, to make more money. It's not unethical - it's part of their business model. And, of course, paying extra for shipping is understood by all of their customers as 'the cost of doing business'.
Overseas orders can be a bit trickier, but that's when companies get into a distribution model. They partner with overseas distributors, get an order with a discount for mass quantities, produce the items, get paid, and ship the items to them for distribution. You work to find a company that will sell your product, and then, you get to ship out bulk shipments of multiple items, at yet another discount.
Everybody recognizes a small company that provides a niche product. If they're the only company producing the product, they can pretty much get away with whatever they want in the short term. Of course, they're also usually the company that disappears overnight, once a competitor reverse engineers their product and then starts their own distribution. I would always deal with a company that says, "our product costs
this, and our shipping cost is
this for local and
this if you're not local" over the ambiguous promise.