We agree that shipping sucks but with fulfillment, postal costs, and storage it adds up very quickly. In our experience, USPS does lose packages especially during high volume seasons such as Christmas and early summer. The postage itself cost 1.12 if shipped as a flat but with tracking it comes out to 2.42 shipped as a package. You are correct in that .50 would cover standard postage for under 13 oz as a letter, but shipping in that manner may damage our product.
As you can see in the link below, standard storage and handling charges cost around $2.50. http://www.shipwire.com/pricing/
Thanks again for taking the time to check out our project!