As someone with an online retail business, it makes me laugh when sending packages to remote places. That letter to Iceland isn't too different from what I've experienced.
I will occasionally get addresses like
Left at the church. House on the right with the red door.
Boondocks, Greenland
03840
That's funny. And it gets there?
No problems yet. Each time I get an odd address like this, I'll email them asking if it's correct. They'll usually tell me it helps the package get there.