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Think of it like, the base price to ship is high, and it increases as you add items. However, it isn't a flat increase per item, and the increase is almost always much lower than the the base shipping. This allows you to allocate the shipping cost among several items, effectively lowering the shipping price from, say, $20 on one item to $10 each on four items. While the overall shipping price is higher, the per item shipping charge is half what it would've cost to ship each item by itself.
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