Exactly how are the people getting ripped off? Not sure exactly what you are talking about.
UPS & FX is always fully trackable and you can get Delivery and/or Signature Confirmation with mail.
I sell a bit on ebay and always use the mail unless an item gets really big or heavy, then may use UPS for cheaper rate.
UPS and FedEx REALLY throw the packages around and the handlers don't care.
The key to shipping is YOUR PACKAGING. If the item is any close to being fragile or sensitive, then you must pack them well and securely. Use an oversize box and lots of good padding like bubble wrap. Make sure box is stuffed with whatever-padding so the item cannot move around any. And then use GOOD packing tape and tape the heck out the box. Yes good tape and bubble wrap costs money but that's just part of the price of doing business and/or sending stuff safely.
Then on any item whose value goes over around say ..... $50, I get the insurance. It is cheap and pays you back for item, mailing fee and insurance fee ..... all of it ... if they damage the box or lose it.
Again... item shipping safety is all in your packaging and not so much about which service you use.