I send tracking on everything. It's well worth the cost- especially for valuable items (I sell computer systems).
I have Terms of Service agreement, and know that I can't uphold at least half of it. Most buyers will be fine, though.
I haven't had problems with customers not buying my stuff. Last Christmas season, I sold out of computers by the 10th of December. My last computer on
eBay (Acer Netbook priced slightly above market value) sold within 3 hours.
For common items, I'll wait for a buyer that is fine with my terms. I'll have tracking and insurance. If there are damaged goods, I'll help the buyer with their claim by showing images of the packed box and the contents.
I absolutely hate eBay's policies. But, I've done okay with them.
< /Rant>
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