Craftsitemedic appears to be a typical marketing service, and in trying to find some of their clients in a typical Google search, I'd say they have some research to do in search engine tactics as well as website design (although I've no idea if they've done those websites). In any case, a good marketing relationship can only be had locally or in person. If you need marketing help like that, start investigating local businesspeople to find a good fit.
If you aren't technically savvy, it might do you well to sign up with a service like artmarketing.com; as far as I can see, you can set up a comparable system in Excel. I do my own databases in a database program, so I've got an advantage, but not everyone is trained, and artmarketing doesn't seem to be overly expensive (although...there's probably freeware available that would do the same thing). Anyone who claims they can send out direct marketing emails, however, are always suspect. I'd check out exactly what that entails first; if it's their list, is it any good, and is it targeted? If you use your own list and they just mail it for you (i.e., newsletter service) that's another story.
Fish and chutney is delish! Chicken, pork, you can mix it up with greens, toss it into salads, use it as a spread for sandwiches & wraps; mix it in with rice and veggies...just about anything goes. Put a tablespoon in your next fruit smoothie, too!
I'd go $20-30. Better to have a range than not. You could have simple and more complex versions.
As far as shipping goes, it's all about perception. If you charge $25 all-inclusive, it seems like more than $20 + ($5) shipping. Or, you could up the price on everything and call it free shipping.
The thing with shipping is...it can eat you alive if you're not careful. I shipped stuff to a podunk little town out west somewhere and got killed on the deal. I won't use UPS anymore, that's for sure!
Ditto the first response; go with what you know. Price will also depend on the quality and complexity of the product. More features, more cost, maybe a percentage of the materials+labor per feature (a pocket in a purse, for example, would be a feature).
A site like that WILL cost you an arm and a leg to have someone put it together for you; not only will there be pics, but also product info and pricing and a payment setup. My sister does websites, and she won't touch sites like yours! It's tedium times ten! I can hardly stand to do my own!
My advice would be to go with something like ipage.com or another site service that allows you to link PayPal or such to your pages.