1.A I don't have to pay an arm and a leg for netflix dvds comes with my subscription. I pay amazon 60 dollars a year for "free" shipping. What I am getting at is there are other avenues/models to go down than kicking the shipping cost direct to the consumer i.e. you and me.
Netflix Buys a DVD for $8, charges someone 15/month, and you can get at most 5 dvds during that time, and they pay about 50 cents each way for mailing. So you are paying at least 1/4 of the DVD. They rent them out between 10 and 20 times, making about 400%, and then send the DVDs used for $5. For a final profit of about 450% per Dvd. There is a plus or minus for Dvds that get damaged, or when someone gets a dvd they don't really care about and has it for a month before watching it, giving netflix a 200% profit on that one viewer.
400% profit with a $4 shipping loss for netflix vs 45%-120% profit per item and anywhere from $4 to $12 shipping loss per product for paizo, its not a valid comparison.
your other comparison:
Amanzon Prime has lost Millions of dollars with amazon prime every quarter. According to one article they lost over 170 million dollars due to amazon prime during the last christmas season, and 125 million this quarter. Paizo doesn't have the other revenue streams to suck up a loss like that. The most recent estimate I've seen is that Amanzon looses $11 per amazon prime membership they sell annually. Amanzon currently makes all of its money by its third party selling, and its app store... and amazon's 3rd party selling shipping is more expensive than paizo's.