Parcel disappears in transit, who owes who?

[softas35]

I sold an item to a Singaporean buyer on 15/11/15.  I posted it on 16/11/15 after photographing the packing, and PO transaction.  The buyer emailed on 1/12/15 regarding the non arrival.  I instigated an Auspost missing parcel complaint on 1/12/15.  On 16/12/15 queried Auspost re their progress report, without success.  When I emailed the buyer with this useless info he opened a 'item not received' action with eBay.  I understand his motives and am prepared to provide a complete refund.  He has the PO photo showing that the parcel was posted and that the parcel address was correct.  Do I have any redress with eBay or Paypal for what will be my out of pocket expenses, or am I left with the tedious process of trying to get compensation from Auspost?  Thanks, Lee.