I have a couple of thoughts in this area.

You can track packages with the USPS with Delivery Confirmation. It costs a little more, but not that much and it proves that the item was shipped and when. It's saved me with half.com on several items I sold through them, without it I would have had to eat the loss on missing items.

I've been selling cd's online for the last 8 months and I have set shipping charges based on cost, speed, insurance (I self insure even when I charge for it- I've sent out about 900 packages and had only about 10 problems).

The shipping cost is quite often a way that people use to make a couple of dollars especially if the item sold is done by auction- such as e-bay sales.

It helps to make up for the items that don't sell for as much as you'd like them to. It also can make up for the occasional bid winner who decides to renege on the winning bid.

I agree that $20 is high, but as long as the total cost is known at the time the purchase or bid is made it's fair. You do not have to buy or bid on that item.

I would offer lower shipping costs for more than one item as your costs don't go up as quickly when things are shipped together.

As Tim said there are costs for boxes, packing materials, etc. The Lighthouse is protected by the strofoam form, etc but you still ahve to make sure the HL Box comes through ok.

Dennis