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I would still say, time is money. if something I sell for a fiver goes missing . Spending at least an hour or maybe more claiming, resending, waiting and so on is simply not worth it.
I sell on both Amazon and eBay and have found the Free post model a lot less hassle. You never receive complaints or questions about post charges. Its the delivered to your door price that counts. Of course it needs to be factored into your bottom line. I would say that most customers out there...
I use RM packet post 24/48. Its good value but cannot claim. I would say that you need to factor in a small number of items getting lost by royal mail and soak it up. The tracked service or signed for maybe adds £1 to each delivery. The maths is straightforward over a year based on 1000 items...