Somebody correct me if I’m wrong, but the shipper/seller buys the box, tapes it up, puts the label on and drops it in the mail, correct? Is it not also the shipper that makes (and hopefully receives payment for) any insurance claims? I understand the postal service (who ships millions of parcels per day) may lose a very small percentage of items shipped, but I think that if I pay for something, I should receive something.
Now, legally, I may not be obligated to pay for the lost package, (though, as Rick mentioned, PayPal will generally side with the buyer anyway), but
as a maker/seller, I have to put myself in the other person’s shoes. Have I shipped packages without insuring to full value before? Sure, but that was a gamble I took. The buyer shouldn’t be the one gambling the cost of the knife. What if, wanting to be cheap, I send a $300 knife in a paper envelope with no tape? Is it the buyer’s fault when the package arrives with nothing in it? Or if it gets lost because the address got smudged, or I printed a crappy label on a clapped out inkjet that’s 25 years old?
Personally, I try to do everything I can to make my packages as “deliverable” as possible. Confirm addresses/zip codes, double and triple wrap, tape items inside the box, and tape all seams of said box, put clear tape over printed labels to protect from smudging/damage, etc....
since I’ve started doing this, all packages are delivered as shipped . Tape is cheap. Priority Usps boxes are free. I can order mass quantity of any size I want and have them delivered to my door, free. I pad the boxes with junk mail/ad papers when necessary. Also free.
And if I can’t afford a loss, I pay the extra $15 or $20 for insurance. (And yes, these kinds of things are factored into the cost of the product to begin with.)
As far as I’m concerned, that’s just all part of doing (and being able to continue doing) business. YMMV.