EBay's rules:

You cannot pass insurance to the buyer - you must guarantee delivery or the costumer gets a refund, with or without insurance. In other words, all shipments are insured at the seller's expense. If you plan to offer insurance (which I do on larger orders), you must build it into the shipping cost or product price - no separate line item for insurance.

If you ship without tracking, you are vulnerable because you cannot prove the package was received. If a buyer says it is not received, you will be forced to issue a refund.

EBay's commissions have probably gone up since you last sold - it is now 10%, and the commission includes shipping. Thus, if you sell for $5 and charge $2 to ship, eBay takes 70 cents off the top (50 cents plus 20 cents). Thus, whether you sell for $7 with free shipping of $5 with $2 shipping, you will pay the same commission. My solution to cover postage, packaging costs, risk, and commission: I charge around $2.50 for the first item, and 25 cents for each additional item.

If you ship internationally, there are a whole different set of warnings.