How can a chinese company offer free shipping and still make money on ebay?

Ed:

I wish you had provided a link to the eBay lot in question so we could see what you are asking about. Having an auction lot priced in US dollars and shipping charges in a different currency is something I have never seen.

What I have seen is this: Chinese sellers list lots for a few cents, and charge US$25 - $100 (the actual value of the item) for shipping. They do this to avoid eBay fees, which is unethical but (apparently) legal.

I hope you have this right. Please post the link to the item - I would like to see this.

Added later:

Thank you for posting the link to the eBay lot.

All of the items this seller has (except one) say FREE shipping. I can only assume that he is hoping that the item will sell for enough to cover shipping. Otherwise, he will take a loss (He seems to be legit based on his feedback). Good luck.

He is NOT selling at 14 cents, it was you WON other buyers with 14 cents BID !

That is an auction !

You said he paid $3.37 USD postage, meaning he already lost money, obviously he was expecting a higher bid.

ePacket is an economical shipping option provided by the USPS for shipments from certain overseas countries.

As you may know, the US Postal Service is losing billions. This is one reason why.

Shipping is priced into the item

They have your e-mail address; that's the really valuable part of the deal....

I don't know, unless what they really want is your personal details.

ITS A TRAP!