And, shipping it that way is going to leave a HUGE chance that the item tears the envelope, and gets lost. FC Mail has ZERO innate Insurance.

So,
15.99 - Amazon Fee = 13.59
13.59 - Shipping = 9.75
9.75 - Cost of Goods = -3.71

This is one product, out of over 100,000+ Products.

Each item that I've looked at from this seller is in the same place. Losing Money after actually buying the product.

And no. They aren't buying Surplus. The manufacturer in question doesn't bulk surplus inventory