Postal Letter - What happens to items lost by the post office?

What happens to items lost by the post office?

What happens if you sell an item on eBay, don't get the insurance, and the post office looses or destroys the item and there is no question that the post office was the one who messed up. Can the seller protest that through PayPal because they technically didn't get the item? I have ordered a lot of items which are under 25 dollars and many times the sellers don't even offer insurance, but include delivery confirmation standard.

Public Comments

Probably end up at a postal worker's home.
Nope. With eBay and PayPal you get no real protection. Read the fine print of their TOS and you see that they do very little. Purchase from a reputable retail establishment using a real credit card (not a debit card) and you get zero on-line liability. Unfortunately, eBay doesn't take credit cards. By the way, how can you be so sure the USPS lost your item if you didn't buy insurance or tracking service? It certainly isn't PayPal's fault because they are simply a payment processing service. They don't guarantee you get the item, just that the merchant/seller gets paid.
The claim would probably be filed with the PO