Pretty much, but I feel like some compromises could be found into a workable solution/program given existing fees and idiotic shipping costs through these platforms. I shipped a guitar to a family member across the country a couple weeks ago and it was $37 with insurance and signature, so why is it like $100+ on reverb?
My guess is that they're getting a substantial cut of the shipping costs to use their "discounted and only way the seller gets protection" labels. They should roll that over into a dealer program instead of using it to float losses that could be avoided almost entirely. Music stores don't make most of their money on sales, they make it on services. Between that and it being shipped there, I could see most dealers being okay with charging something like a $15 fee for a chance the person might also pay $60-100 to have it set up or more on strings, case, lessons, etc... when they come to pick it up.