Thanks to all who have replied so far. Your advice has been appreciated and useful. My main point is that the onus should be on the buyer rather than the seller. In any other auction situation, the item is sold as is, where is, and the buyer makes their own shipping arrangements unless otherwise advised. I have never seen a scenario such as this where the seller is responsible for the item until it reaches its' destination, even when the buyer has opted for the cheapest possible postage. 

I think the seller should only be obliged to provide absolute proof of postage in accordance with the buyers'  selected postal option. 

With the recent increases in ebay fees, it's hardly worthwhile selling anything under $20.00 in value when you factor in paypal and postage costs too, plus the accountability. When I have to refund the item price and postage cost, it hurts. Because no one is honest enough to email a week later to say it did in fact arrive. 

I do agree there are shonky sellers too so maybe standard registered post may be the answer? 

Many thanks for your interest,

Allan