Shipping - Who's Resposible for Receipt of Item?


Small item transaction. Buyer sent funds and I shipped the item regular post with tracking. The on-line tracking indicates the item was received, but the buyer does not acknowledge receipt. If the item does not show up, what is the next step? Do I refund his money and I take the hit for the lost item, or is he responsible. Looking for advice.
brf
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All these potential shipping problems can all be eliminated if the buyer and seller actually meet to complete the transaction. For a high value item (and I recognize that is entirely subjective) is it really unreasonable to travel 300 miles to pick up an item? If both parties are willing to travel then the range doubles. I live in Ann Arbor, MI and that puts anywhere from NYC, Minneapolis, St. Louis, Nashville and Washington D.C. within reach. It's not without its own problems, but it definitely avoids some of the shipping problems discussed in this thread.
Good luck getting your insurance refund from the post office. they deny EVERY claim. I had a similar problem where I shipped a set of high dollar interconnects. They were sent priority mail, insured with delivery confirmation and tracking.... but never arrived to the buyer.

I put a claim in with the post office who told me they would research it and after so many days I could make an insurance claim.

To make an insurance claim you have to send either your purchasing receipt for the item or some proof of value (catalog showing item, statement from a dealer etc). So I sent two or three printed web pages from dealers showing the item and it's cost new plus the paypal receipt from the buyer. The value new was something like 240$ and I was trying to get back $120 which is what I sold the item for, the amount I refunded to the buyer, and the amount I insured them for.

Post office denied my claim stating that the dates on the printouts I sent them were a later date than when the item was shipped (they were looking at the 'date printed' in the upper hand corner of the paper) and they claimed this meant I had purchased the item new again to replace what they lost and was trying to get my money back on that purchase. I'm not sure how they get $120 = $240??? or how they think a web page catalog printout = a new receipt.

Another friend bought an expensive set of brakes and the package was opened during transit and one brake roter and caliper were lost and he received a box with just the mounting hardware in it. Post office denied his claim as well.
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I started a thread like this a long time ago, and my ultimate conclusion was that unless otherwise agreed to, the risk of loss in shipping was with the seller. Anytime I sell anything, if the buyer isn't paying for shipping with signature service and insurance, I make very clear that they bear the risk of loss/damage in shipping.