It does not matter that you labeled the package "fragile". Aust Post will not take responsibility nor do they bother with the word/s "fragile", "photos, do not bend" etc. unfortunately if you did not have any insurance on the parcel there is nothing you can do except refund the buyer. Parcels must be wrapped securely to withstand 20kg being dropped on them. It would have been safer to post it in a box rather than a satchel/bag, or in a box inside a bag.
And yes, eBay is all about the buyer, sellers are getting screwed left, right and centre and rarely will a seller win a case. Having said that, There was a case filed by a buyer for Not as Described, claiming the item was damaged. The seller, (quite brilliantly) looked the buyer up on Facebook, and there she was, out at a function, wearing the "damaged" item. The seller provided the pics to eBay and won the case. This is a very rare example of the seller winning a dispute.
On the other hand, I myself have been stung by the bs MBG where a buying claimed I sent the wrong size, uploaded pics of the "incorrect" size label so I accepted the return, somewhat baffled as to how there could be 2 different size labels on an article of clothing as one of my pics showed the sizing. I accepted the return. I paid for the return of the item. Upon receiving the item back, it was a completely different item. Guess what? eBay sided with the buyer and refunded. So I lost $120, my item and got stuck with an old, faded, well worn piece of clothing. Despite me pointing all this out to eBay, including the fact that their own policy states, items must be returned in the same condition it was received, their bs excuse was that the buyer returned an item and because they don't physically get to see the item they must refund the buyer!
So, unless you can categorically prove the camera wasn't cracked you will lose. It doesn't matter that the pics in your listing show the camera as you sent it, because between you having it, posting it and the buyer receiving it, it could have been damaged during transit.
