Fred.....the post office is the one who should pay. They are the weak link here. The buyer paid. You shipped. Your agent, the post office, didn't deliver. They should be of the hook. As the shipper, you will have to file the claim to get the money back. You will need the receipt from them and some form of proof of what the buyer paid like the paypal transaction and some other documentation to establish the goods in the package. Paypal shouldn't have to pay anything on this. A bummer that they have tied your funds up. If, for some reason, they refund the buyer and it still doesn't get delivered, file the claim with the post office and you will get the $2K in your pocket. If paypal refunds them and subsequently the package gets delivered, you are screwed on that one.......good luck!
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