How to make ebay online business profitable

I am planning to run my ebay online business. I found one product which unit price is US$4.58 from the manufacturer but the product is already listed on ebay at $9.99 with free shipping by Australian local seller.

I wonder, how the seller can make profit? Even the cheapest shipping costs $7.55, and ebay fee & paypal fee is $3.03. I don't have big budget so I thought I can start online business, but it seems impossible to make profit. Please anyone advise me how the seller can afford free shipping? how they can make profit?

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