I think I would rather give that little money to the seller than that greedy multi millionaire company get my pennies.
As for the handling and shipping cost, I dont think there is a fix rate at how much a handling cost should be.
If that item happen to be an engine of a car, seller is happy to give it away for like 1c. Putting that engine on a pallette and arranging it to be shipped to you would cost him alot of time and effort.
Honestly if I have to spend that many hours just to ship the item to buyer, give a bargain, a good service and then get moaned at, then I would rather trash that engine and be done with it. I can see why some seller only offer collection only
Like what they say, if you aint happy with the price then dont bid, no one forced you to, and you cant make the seller change his pricing to your liking
No I dont list my items like that, I think its wrong. But if I see some seller list with low price + high shipping cost, I check if Im happy to go ahead and buy. If not happy then I just move on but I dont stress myself out for that sort things, my life is more valuable than that