That is actually not true. Almost every auction is limited to DOA returns only. And even if it does arrive DOA, if you test it before you ship it, and it arrives not working, then it would be the carriers fault. All auctions would require insurance.
As far as fraud, i will be using paypal only, and only verified paypal users can bid. You cant really jip someone. This is the process...they pay me, then i ship it.
Also, the cant leave you negative feedback, unless i did something "negative"..which i don't know what that could possibly be. I already have 100+ 100% positive feedback...i have been buying selling for a while.