I've taken it on good authority that P&H fees include all costs of doing business: commercial costs (factored into expected sales), operator costs, warehousing, fulfillment, shipping, and actual cost of the good is generally the lowest on that list. Some profit is taken here, but the actual price is all profit. This is why a lot of infomercials can claim to offer a money-back guarantee, less P&H. They covered their costs and made a profit; returning what you think is the price after jumping through a bunch of hoops and paying out the nose for registered shipping isn't too much of a concession.