"All these fees are why you often see S&H fees of $1.80, $2 or higher for a single chip..."

Chuck; Depending upon the chip ... $1.80-$2 is not an unreasonable amount to pay for shipping.

Minimum USPS insurance for up to $50 coverage costs $1.30 and mailing a single chip cost .49¢ to .60¢ for postage.... which has nothing to do with PayPal (to which I personally do not subscribe).