Originally Posted by selena

I sell on Amazon, and they do that for a couple of reasons. In your instance, Amazon only takes their cut from the sale price, not the shipping price.

Also, in terms of sales, it makes a huge difference if a seller gets the buy box. (that isn't just based on price, but price is a factor). Lots of times, as a featured seller, I will have the buy box, and be charging 3 times what the other sellers are that listed as "also available from", and I will make the sale. Shipping costs aren't factored in to the buy box positioning formula, so that is another reason.

Or that is my guess, anyhow. I don't know for sure, as things I sell are priced much higher than a penny.