I have one due today from wow. I will report my experiences.
I do agree this 'policy' is a slippery slope for wow. One mistake looks real bad and bamm! Your reputation is tarnished. It
should be a straight up pricing system for both products and s/h.
Owner of wow:
you should change this and take care of the other customers that have chimed in on this thread. Otherwise, this could be the end...just warning you as a fellow business owner and 'friend'. Raise your base price for your Helli's and get rid of the extra 'Handling charge'. Don't worry, we will understand and appreciate it! Continue to check each one, and mention it on your site to instill the same confidence in potential customers, just don't say it's a 'service' they have to pay for in the shipping charge. This may have been an experiment for you, but trust me, extra shipping charges automatically raise the eyebrows of consumers. Don't leave room for skepticism!

Nothing is better than clear product pricing.
Notice your Heli s/h policy has a defensive tone to it? It's a good idea to stay away from any policy that puts you in the defensive right off the bat.
When I had my store I used shipping to
give "quantity" discounts. Meaning, I usually lost a little on the shipping charge for larger orders, but it gave my customers a break for ordering more stuff. The profit on each piece was sufficient to cover the little extra I had to kick in to ship the order out.
Make your customers feel that they are getting a deal without "iffy" tactics/policies/charges. Yes, it's a psychological thing.
Just my 2 cents,
Jay
Urgent advice: fix this now before it gets worse dude!