If you look on eBay you will notice that a lot of items with high fixed shipping charges end up selling for less. Most people know what they'll pay regardless of the details.
But them some folks like a deal. Reminds me of the car companies who raise their prices $700 and then offer a $500 rebate. Ha!! Car companies use the term "No Extra Charge" a lot. In case you missed that week's marketing class, that item at No Extra Charge is not free, it's included in the base price.