What does the tracking # show? As a seller you are responsible for the item getting to the customer. If the item doesn t arrive either you refund the full amount or paypal forces a refund. Insurance protects the seller in the event of lost or damaged items. If they loose the package the usps will not re imburse you.
Just from my personal opinion, you shouldn t be charged. If you shipped the item like you said and your responsibility was your Post Office should reimburse you. When you signed for the package to be sent off, you should have only had to pay for insurance if the package was over a certain weight. Check out the receipt. I m sure your Post Office hasn t lost it though.
Yup your stuck;(