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I sell a lot on ebay, and have found that high shipping leaves a bitter taste in people's mouths. I have only ever charged for what it costs to send via priority mail. Packing peanuts are cheap, so I never charge a "handling" fee. Insurance is always an option, but I inform the buyer that I am not responsible for items broken by the mail service, if insurance is turned down. Now for some things, it makes no sense to insure it. Like the cast iron door knocker I sold. Not even a mail truck running the box over would have messed that up!
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