I ordered from Newark/Element14 once, doing battle with and finally prevailing over their extremely clunky online system. It took several days for my $100 order to even ship, and it eventually showed up in two gigantic boxes (a few 4ft pieces of heat shrink tubing had obviously required their own 4ft long box). The packing materials and shipping must have totaled at least $100, to say nothing of the obviously manual labor.
I've no idea how they stay in business.