In a nutshell—on eBay, it is the seller who absorbs the risk if a problem arises. Not eBay, not the buyer. When an item is lost, the buyer gets a refund from the seller. If the seller purchased shipping insurance, he/she makes a claim to be compensated for the lost goods. If not, the seller eats the loss (and may be able to use it as a deduction on one’s income tax). FYI-a buyer should not be made to wait for a refund while a seller applies for insurance proceeds.
I plan for such losses by keeping a suspense fund. A few cents of every sale goes to it. (Over the years, it can become a substantial amount.) Shrinkage in retail is a cost of doing business and needs to be addressed ahead of time. In this way, one has the ready cash to refund if an unforeseen event happens.
