Shipping fees should cover the cost to get something to me, not be a huge
profit margin for the seller. Some sellers sell stuff for 1 cent and
charge $19.95 shipping to get around Ebay fees as Ebay doesn't charge
their cut on shipping.

That's also contrary to eBay policy. I don't know why they don't crack down
on it, since it's money out of their pocket.

Hundred of thousands of auctions. Not sure how they could monitor such
things on an item by item level without any complaints. They may do
some sampling, however.