This thread has been very thought provoking. I went to USPS.com to learn more about proper shipping and insurnace/loss claims with them.
I learned that a First Class mailing, like the one sent here, was perhaps 98cents to mail.
IF a padded envelope, or rigid mailer was used, the rate for First Class postage would have been $1.39. Item value is still not insured, but the package may have faired better in the USPS automated systems.
Adding $75 insurance to either package.....$2.25.
Priority Mail, including insurance value up to $100, in a box, is $4.80.
Unfortunately, standard First Class mail is not protected against loss unless the shipper adds insurance. Even if a postal worker rifles the package, the loss is not covered. If the automated sorter destroys the package and the contents fall out (probably what happened here), not covered.
With all the problems associated with doing any commerce online, I will not be selling or buying anything without requiring insurance and proof of delivery.
Again, I am sorry your loss had to occur in order for all of us to become more aware of the pitfalls of online transactions.