This might be true with large shipments (excess of 50lbs), but most companies pass the savings on to the consumer. On small items, including barrels, there is a very minimal difference if any.
I don't think your really aware of the cost associated with shipping. I felt the same way until I started shipping over 6 years ago. I think maybe you are referring to "Postage" only, not all the related shipping cost. I believe every Vendor's shipping department employee's are looking for a paycheck at the end of the week. Boxes, tape, staplers, wrap, or filling material doesn't come free, at least not to me!
Shipping is not a profit center. If it is, I need someone to explain it to me, I am missing the boat somewhere.
Some Vendors do absorb some if not all shipping cost. The end users feelings is why most of my items are quoted "Shipping Included". Several other companies including the ones who commented here are doing the same thing, either absorbing all of the shipping, or part of it. I realize this does not apply to 100% of the Vendors.
This subject can be debated forever. I want to thank the Vendors who commented on this subject. It's an area that is very misunderstood by many. Please take note there was shipping charge increase by most of the major shipping companies that took effect this month. I like many others wish it was the other way, but I don't believe I have ever seen shipping charges by the shipping companies go down.
Dennis