I can see why that would be upsetting, that is a pretty dramatic overcharge. Have you contacted the company, maybe it is an artifact of an error in the shopping cart, and nobody is aware.
I’ve not really encountered this on domestic purchases in the US. I have had some overseas orders from the UK and Spain that were kind of high, but that was’t enough to upset me at more like 1.5 times that actual shipping cost, not by orders of magnitude.
I don’t understand why some shopping carts can calculate actual shipping cost, and others produce numbers that are wildly off the mark.
As far as handling and packing charges go, I’m not charged for construction, and shelving fees at the retail storefront, so I really don’t “buy” into the handling costs thing. That should be covered in the mark up of the product. The profit margin on the retail sale is the handling and packing fee.
I understand that buying a single $5 item is probably a net loss for a lot of companies, so I understand the idea of a minimum shipping charge or minimum order requirement. I don’t expect the owner to ship out bunches of tiny orders, earning half minimum wage to for the effort. But packing fees on “normal” orders is just tacky as far as I’m concerned, as is overtly excessive shipping fees.