Extremely cheap mic/headphones adapter

[elipsoid]

About 10 days ago I ordered this headphone adapter that has built-in microphone. It cost me $2.38 including shipping from Hong-Kong to Europe.
Honestly, for that kind of money, I didn't believe I would receive anything at all. But a package came the other day and guess what - it works. So now I can make skype calls even from Windows 7 using my Koss Porta Pros.
Can anybody explain me how these people are making money? It is cheaper to buy this and have it shipped from another continent than to send a letter to another country in Europe.

[JKoltner]

My guess has always been that postage from Hong Kong to the U.S. is just about free to the mailer... perhaps the government heavily subsidizes it somehow?

I can see the guy making, say, a buck on each one, and he could easily be sending out 100 per day... and $100/day in Hong Kong is starting to look like decent money compared to what you'd make farming!

[elipsoid]

Government subsidy is a possibility, I didn't think of that. But it seems unlikely.
Maybe they are just sending so much mail that they have a discount.
Anyways, it works great and even looks better than on the picture.