I just had a case where I sold something on ebay and got paid through paypal. I shipped the item, provided tracking number. Now the post office lost the package (tracking shows the package being stationary at a sorting facility for the past 16 days). Naturally the buyer opened a claim against me (he knows it's the post office's fault but there's nothing he can do) so I understand that. I contacted paypal, showed proof of tracking, and paypal told me I have to refund the money because it's still my fault because I couldn't get the package to the buyer. I told them it's the post office's fault, but they said I should've gotten insurance (which cost extra that most buyers won't pay for). So now I'm pretty much screwed cause not only do I lose my stuff that I sold, I also lose money. All in all, I'm just really mad that a mult-million dollar company like paypal can't protect the seller and take it up against the post office. Be warned sellers, include insurance in your price so you don't end up like me, getting screwed.