The fact that the AHs will drop their shipping prices readily if you ask is proof that it is a profit center.
The fact that the auctioneer uses a more expensive system than USPS is their choice, not mine, and not my problem. I should not have to pay for it. USPS is quite good; the 'safety' issue is BS. I use it for all Ebay sales and have never had a lost item. The few lost items I've had as an Ebay purchaser have been overseas items lost in customs. Some of the smaller auctioneers ship their stuff USPS and do just fine.
Any AH should be insured on its own policy for loss of inventory including shipping, based on total sales value. Purchasing extremely expensive per-item insurance is simply the AH foisting off an internal operating cost onto the buyer.
If you have your own collectibles insurance odds are that you have your own insurance coverage for losses in shipping.
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