You have to remember it is shipping and handling.

I believe I would at least ask them to explain and perhaps even to refund some of the "handling" fee. Never hurts to ask and I would want to know if this is the way they do business. I understand some up charge but that is a bit excessive. Ask them what you would pay if you picked up at the store and see how that price compares.

I'd say it's fair. Minimum wage for someone to put the order together, an envelope and a stamp. It's a tough pill to chew but they also have to cover the cost. There is also the cost of getting to the post office. This Is kind of the deal with buying online and another reason to pay a visit to your local fly shop

The postage on that SHOULD have been just under $2, not a single forever stamp. Nonetheless, IMHO you got hosed. They charged you far more than any conceivable costs, let alone the possibility that it was going to arrive postage due when you got it!
Complain to them, politely but very firmly. Then no matter the outcome, take your business elsewhere, and let them know why.
You have choices . . .

I realize you didn't specifically request opinions in your post, but here's my perspective, based on a couple of similar experiences:
When I placed the order, I was clearly ok with paying $6 to get an $8 item delivered to my house, so it doesn't matter to me whether it arrives tied to an arrow shot into my garage door or wrapped in gauze and delivered by a swimsuit model on the back of a trained elephant accompanied by a brass band.

(to be fair, I live a long way from any major centers, and rely on either burning a bunch of gas or paying shipping charges to get a lot of stuff - and I only WISH we had a mail service as quick and inexpensive as you 'merkins have. Plus, I really like elephants )
brent

I think I ordered a rod recently from the same people and was charged the same amount for shipping. It was drop shipped from the factory so they didn't even handle it. Everywhere else on the web ships free for orders over $100. Probably will do my online business elsewhere from now on. Their shipping policies are a bit outdated.

Handling fees are baloney. The cost of handling should be reflected in the price of the item.

This is the same for Internet service or buying a car. Don't give me a price then later state various fees from misc sources. That cost, again, is the price of doing business and recouped in the sale price of item or service. Not in fees, like handling.

There's a highly reputable feather dealer that offers free shipping on all purchases... Personally I always try to find "free shipping" it may be slightly calculated into the cost of each item but in cases where I only need a few things a couple cents added here and there is much more appealing to me than flat shipping fees...

Adding shipping is fine since that varies from destination to destination. Handling, however, requires the same time and effort and therefore a constant variable whose cost should be included in the price of the item.

Using Barry's example as an example, as a buyer, I do not need to know the cost of doing business at such granular levels; The seller does. A $5 cost to drive to the post office can easily be added to the cost of the item being sold. Can telling the buyer the cost of running a business be used as a justification point for a high price? I guess so and most likely the real reason for stating "handling" cost but at the end of the day, I am ultimately paying the same price in a different marketing package. I want to know the final cost plus shipping.

Otherwise, it is similar to an advertisement stating that sage txl rods are on sale for $99 plus shipping*.

Dishonest? Not quite. Up front? Sort of. Is this the only gotcha? Who knows. Would I want to deal with this type of seller? No.

* Does not include handling fees of $525.

Happens when one has too much time on their hands.