I sell a lot of books and video games on ebay, which you would think would be easy to pack and ship, right?
Media Mail will cost me $1.50-$3 depending on weight. Then, it's the time out of my day to get to the post office plus gas money to get there. But that's after the item is packed.
If I get a padded envelope from
Walmart, it will cost me $0.79-$1.29 depending on size. Or, I can drive 40 miles round trip to get them for half price at Sams Clubs. Either option againg takes time and gas.
That said, a few dollars for shipping and *handling* above and beyond the postage price is acceptable, IMO. It's handling that you're paying for when you order things online, from a catalogue, etc.
When you're bidding on a item, determine the total price you're willing to pay TOTAL, and don't exceed it. If the seller in this case did not teller the buyer that insurance was mandatory until after the auction closed, then she has a complaint to report to ebay. If the buyer knew in advance, then I don't think there's a complaint. Most auctions who offer/require insurance don't state they will provide USPS insurance. If that's what you want, make sure to ask about it before bidding.
I had a seller change the auction terms after an item ended (refuses to accept and form of Paypal and demanded a money order, which costs time, effort, and money that paypal does not). I reported her to ebay, and they took care of it. The funny thing was the seller tried to get me to pay for the item even after that. Uh, no, I don't think so. It was a consumable product and I did NOT trust the seller to not taint it after being reported for behavior against the TOS.