said by beck:What happens if it's just lost by USPS? If they have a tracking number and the post office has accepted the package and it's then just gone, you eat the loss.
The
seller eats the loss in this situation, if the buyer used Paypal and if the seller did not pay for insurance before shipping-- doesn't matter whether or not buyer paid seller for insurance, as far as Paypal is concerned. If seller paid USPS for insurance, seller can file a claim.