Package never received

[shoppehere]

My buyer contacted me to let me know that she never received her package. I have the tracking where I mailed it, USPS was in possession and then it went through the next city over, then it drops off. She contacted her local post office - in her zip code and they said that they never were in possession. She thinks that means that the entire USPS never had it. 
I shipped it. The tracking says so. What do I do now? 

[simba6]

Unless it says delivered, you will be refunding.  If it was insured, file a claim/trace.

[bbravo65]

...file "missing mail" with USPS.com...message your buyer with the missing case number and inform her that you will get in touch with her every time USPS provide further information...asking her to allow you extra waiting time while Post Office conducts their investigation in searching for that package...

...be super polite...this is your matter to take care of even though you can't control USPS, but if your package didn't show any moves then the "hot coal" is on your hands...

[vintage-camerastuff]

Sounds like the package was just misdirected.  Go to the usps website and check tracking there.  That should tell you where the package is.  Fill out the usps information form for them to notify you when the package moves (you do this all online).  let your buyer know that you contacted usps and you are on top of the situation.   Let the buyer know you have everything under control.  Communicate with the buyer often.  If the buyer senses that you don't know what you are doing she will want a refund asap.

[downunder-61]

Just FYI if the buyer does open INR case:

If you voluntarily refund the buyer within 3 days of the case being opened, you are eligible for reimbursement from eBay on appeal if the item is delivered to the customer within 30 days of the case being closed. More details on the process here. 

[mikhirs]

Yes downunder-61,  that works.  I  sent out some Christmas ornaments that sat in the Little Rock post office for 16 days.  I had to refund.   As soon as I saw they were delivered to the buyer, I contacted  eBay for Business on FB .  Within 4 days, I was made right!