Hobbyhut,
PayPal offers protection for it's sellers against claims for Non-Receipt provided you can show online proof of delivery (with online signature if it is over $250 in value) to the buyer.
This means that in order to be protected against claims or chargebacks for the item not received, it is not an issue of whether or not the item has been shipped - but whether it has been delivered. This is an industry and civil standard that was used long before PayPal entered the payments arena to decide disputes between merchants and consumers.
The concept that any international buyer can open a claim or a chargeback and receive a refund is, however, incorrect. PayPal arbitrates claims of non-receipt every day, and the same USPS tracking number that sellers use can be tracked online. Once the package arrives in the destination country, the local delivery service then uses that same tracking number in their system. I have personally tracked USPS shipments all over the world, from Canada, to Thailand, Japan, South Africa, even Yemen and Russia. It does work, and it can be done.
USPS, however, will tell you their packages can't be tracked internationally. That's because they don't track them internationally - but the local delivery service does. From their viewpoint, it would be inappropriate for them to advise otherwise, as they simply don't control the local postal system in another country. This is where a lot of confusion can come into play.
If your shipping provider isn't willing to service your needs appropriately, or can't, we recommend using a shipping service that can track your package 100% of the way without handing it off to the local services. For example, UPS and FedEx both do so. Of course, these services are often more expensive than USPS, but they do offer an unbroken chain of custody that can offer you peace of mind and security in your shipment.
If you do choose to use a shipping service that doesn't offer this, or the added cost of shipping via an alternative service is not cost effective, then each merchant must ask themselves whether continuing with the transaction with a less than effective shipper - that won't offer them the protection they need - is worth the risk. There are sellers who regularly ship items without tracking internationally, and most seldom see claims.
If your tracking number doesn't confirm delivery, PayPal simply can't prove the buyer has received the item they paid for. If that proof doesn't exist, then a refund must be issued.
For more information on the Seller Protection Policy, see www.paypal.com/useragreement
For more tips on selling safely online, see www.paypal.com/securitycenter.
Thanks!
Adrian
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