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I agree it does sound too good to be true. Of course since (according to this thread) Kindles are actually manufactured in China (where the listing was posted from) it might be that part of the lower price is because it costs less to manufacture over there. Some U.S. Companies have moved plants to Mexico for the same reason, the labor is cheaper and so it costs less to make a given product. I'm not certain that's what happened here though. I don't remember anyone posting what the s/h costs were, but it can't be cheap mailing a package from China. Assuming that it wasn't all just a scam as some have suggested.
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