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T206CollectorWhen I sell an item on ebay, I charge a standard $2.50 s/h fee no matter how many of my items you win. If the amount goes over $50.00, I will purchase the insurance myself, to cover any unexpected losses -- it's just not that expensive. I do not try to shift that risk to the buyer. If the amount is under $50.00, I'll refund the money if requested. Again, just not a big enough deal to make a stink of and I've never had any problems with this theory.
PayPal rocks because I don't have to wait for a check to arrive and then worry that the check will bounce. I also don't have to go to the bank/post office to cash a money order. I get the money almost as soon as the auction ends. Now that is very cool, in my opinion.
Moreover, I have often not bid on auctions where the seller did not accept PayPal. Rather, I have often been encouraged to bid on auctions where the seller does accept PayPal. That alone should tell you why sellers should use it -- many of their customers like it.
I have heard a lot of scare stores about PayPal and am sure I will one day know the joys of getting screwed over by them. But I generally view complaints about PayPal as I do complaints about buying cards on eBay -- it may not be perfect, but I've bought a ton of cool stuff that way.