Well, to be fair there aren't really any limits to what one can charge for 'handling', either, is there? Some people buy their shipping boxes, some people get them for free. Others use freebie packing material, others who do a lot of business buy it by the roll.
If they don't tell you what the shipping charge is, you should ask. Businesses have been doing this for years. Do you really think the items you buy on a 1-800 commercial REALLY cost 5.99 to ship? Of course not. I don't see why anyone should be outraged over this.