Sorry but why would you not want to refund a buyer that did not get an item they bought from you?? Insurance/tracking is for your protection so you must risk assess every item you sell as some countries don't have delivery confirmation even if sent trackable and for expensive items you need to be careful. Yes even though i am UK i know its the same "within a country". Would you like to buy an item and not receive it? Would you not want a refund? Yes course you would. However ask your buyer to allow plenty of time for the item to arrive as international items can be held up in customs. Have you tried the tracking number to see if you can locate it? Also if you do have tracking and the item does not arrive then you may well be able to claim from your shipping company.
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