Coincidentally in the past couple of days I've been doing a lot of shopping in a space where the good is nominally ~$10 but shipping is ~$20. I've heard that there's a lot of distortions like that brought on by various storefront systems not allowing you to set per-item shipping prices sufficiently granularly, and the store owners will compensate by setting their target shipping price in whatever manner they can and then making the target item price whatever it needs to be to work out. For the particular things I'm shopping for (semi-obscure CDs), $30 is a reasonable price with shipping, so I bought without complaining, because the "shipping price" isn't really relevant to me, only the final price I pay.
For a while you could kind of run some scams where you the store aggregation sites would show you as the cheapest because your price was $1 and the sort order would ignore your $25 shipping fee, sorting you in front of the shop selling for $5 and $5 shipping, but all the aggregators I've seen lately have switched to sorting by price + shipping so that doesn't work anymore.
Without it, a nearby distributor might look like a more compelling option than the giant monolithic (and near monopolistic) online retailer.