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If you want it, you can buy a $0.50 iPhone 5 case with free shipping from Aliexpress right now: https://www.aliexpress.com/item/4001089727974.html

Alternatively, you could buy a $0.06 phone stand with free shipping: https://www.aliexpress.com/item/4001172525823.html

Cheapest I saw on taobao just now was 3 RMB including shipping:

https://m.tb.cn/h.VpeyELi?sm=ddc20e

Opened the taobao android app, searched for 手机套, filtered by 包邮 (shipping included) and sorted by price.

In the case of phone cases, you can get Chinese domestic shipping costs as low as $0.2 if your daily volume is high enough. It's a special offer tho, since it's light weight and compact.

And yes, shipping companies can still make normal profit on these.

From this standpoint, your example isn't nearly the cheapest it can get. Sellers regularly offer entirely free ones in exchange for reviews.