the problem is that the vat and import duty is calculated on the shipping as well.
There's been the beginning of a debate here in Canada in recent months. Import duties are calculated differently on online orders versus driving across the border to buy stuff (different limit on the allowed value of your purchases before you have to pay import duties), and consumers are starting to complain. Unfortunately, it doesn't seem like this is going anywhere so far, and it's not very publicly discussed.
This is a fairly touchy subject these days where ordering online from anywhere in the world is very easy, and countries are trying to protect their local businesses.