Item Broken in Shipping

[addys.variety.store]

I recently sent out an order and the item got broken in shipping. I bubble wrapped it and took precautions to prevent that from happening. I know USPS has a $100 insurance coverage, but if I don't have the item how would it work? Is there a way Ebay can step in since it wasn't my fault it was damaged? I want to refund the buyer, but also don't want to lose money. I have never had any shipping issues befores so thanks for any suggestions. 

[ebooksdiva]

Just an FYI. If you ask eBay to handle your damaged item case you won't like the outcome. 
What is the outcome? eBay will refund the buyer without requiring a return and give you a defect against your account for cases closed without a seller resolution.

Sellers are held responsible for the item until it is delivered to the buyer. If it arrives damaged the seller is responsible to refund the buyer without requiring or without requiring the buyer to return the item. 
As for insurance, I don't know how that works because, I personally, have never filed a claim.

[lakefor94]

EBay is out of the shipping picture. They won't do anything as a damaged item is strictly between you and the carrier.

You are responsible to the buyer as well. 

You can try to involve the buyer but know that the buyer is NOT obligated to assist with tasks, such as taking the item and packaging to the post office for inspection if you file a claim.

If the buyer files a Item Received Damaged return case, the buyer is obligated to send the item back to you if you pay the return shipping and refund in full on top of that when you get the item back.

@addys.variety.store 

You could then attempt a damage claim with USPS but it is highly unlikely that USPS will accept it, jfyi.

The insurance is basically good for lost shipments. Damaged items are tough to get a claim approved.

[simba6]

You need to refund the buyer before eBay does.   Hard to say if they would pay the claim.  They often  "weasel" out saying poor packing.   They could break an anvil...............

[kensgiftshop]

Ask the buyer for a few pictures of the item and package, then refund the buyer.
Have the buyer hang on to the item and package so it can be inspected.
You file a claim with the carrier.