Well considering the shipping is listed right next to the price I don't think there's too many fast ones being pulled.Its a way for the sellers to increase the price a little without showing it unless you look.
There is a very simple reason. Buyers are only going to pay so much for a watch and that is not going to change whether the shipping is $1 or $100. Only a fool would ever push the button not knowing what the bottom line cost was. And since that's how it is, sellers often keep the shipping high so they're not dinged quite as bad on the Ebay fees which are based by % of the sale.... they still have to pay the Paypal ones. (which you'll never see a buyer volunteer to pay)
It all makes sense if you understand it. Not to say it's the best system for everyone because there's nothing that will ever accommodate millions of people to a 100% complete satisfaction.