O.P. This is an international accepted method of selling online. Where the sticker price is brough down as low as possible and the cost and profit adjusted in S&H charges.
Simply do a search for any low value product on eBay.com (the parent US site) and you will see most products actually selling for 1 cent - yes 45 paise.
I just did a searach for "Card Reader" on eBay.com and found that over 80 card readers had sold in last 12 hours (on 8th Sept. 05 till 11.30 a.m.) all below $1 and most 1 cent. Infact there are over 2000 card readers listed below $1.
However you should not have a huge problem since the s&h charges on most (99%) eBay.in listings is mentioned upfront. It is there on the listings. It is also now a default search option where the s&h charges including any transit insurance is mentioned in the search. The problem would only be if, after you have won and auction at an absurdly low price and seller would ask for higher shipping charges than those mentioned on the site.
With low item prices and high shipping charges it is only eBay.in who is robbed of its legitimate fees and not really the buyers as those sellers with low item cost are more often than not passing on the lower fee benefit to the buyers.