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First Class Shipping on Jewelry - How do they do it?

I've been selling costume jewelry online for a few months now, shipping it in a jewelry box in a padded envelope via USPS Ground Advantage.  The cost usually ranges from about $4-$6 depending on location. I've noticed there are many, many jewelry sellers that are using "standard shipping" or specify "first class" for a highly cheap shipping price.  While I understand first class does not include insurance, I'm confused by how all these shippers can use USPS first class when the USPS regs say there can't be more than a 1/4 inch variance in the envelope's contents.  Obviously, all these beads, pendants, etc. are much thicker than 1/4 inch.  Am I missing out on a cheap way to ship cheap pieces?  I have not been listing cheap pieces under $15 because it seems cost prohibitive to ship.

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