For the bulk sellers, that is usually the way that it goes. The "selling price" is so low that they make their money on shipping charges - whether or not they actually send out the items individually or in a single box.
Non-bulk sellers are much more willing to do what you suggested - combine shipping and send you a refund through Paypal for anything above the actual cost of shipping. A non-bulk seller did that very thing for me this past week.
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