can a seller keep the postage if item didn't arrive?

I recently bought 2 disney dominos off the same seller one day apart. 

 

One had free postage and the other one had postage for $1.00. I paid $6.20 in total for the transaction.

Neither item has turned up and i presume they were posted together. The seller said they were sent on april 7th and should have arrived well by now. I requested a refund from the seller.

They replied saying they would refund me less postage and handling.

they refunded me $5.20 rather than the full amount.

Is this correct?

 

Ive been using ebay abou 10 years buying and selling but have never encounted this, I would never expect a buyer to pay anything for something that did not turn up.

 

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