Just so you know, if you ship in a bubble mailer with USPS First Class Mail you will get it shipped and tracked for under $2.50 USD. Definitely don't pay more than that!
Yeah, flat rate is a RIP off. I've been shipping for 20 years now online and First Class is definitely the way to go. I'm currently writing a book to help sellers with things like this ^_^ There's a lot of small things you can do to save a TON on shipping and selling.
the last game I sent out cost me 5.95 with tracking and I used a flat envelope and I just thought that was the best way to send it out. I just order the supplies off there site today.
Sounds like you used Priority Mail, which is definitely overkill for shipping these small relatively inexpensive items. I agree with goomba478, definitly use 1st class mail with the tracking included for less than $3 (prices go up after Jan. 17), and save yourself and your customers some money. You'll get tracking and attract more buyers. I'm definitely watching all your games and will be bidding. If you can combine shipping if I win multiple games, I'll try to bid on all of them that are ending soon.