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

If posting OS then do not give the buyer a choice of postage options.

State what the costs will be with registered post and leave it up to the buyer to make that decision of if they want to purchase at that price with that postage cost.

It does NOT cost the seller a thing to post the item as the buyer has paid for it so do not offer a choice.

The main reason to NOT offer a cheaper postage OS is why would a buyer pay more to protect the seller when paypal is their protection.

Have the price of registered postage in the listing and let them decide if they want to purchase.

If posting OS then do not give the buyer a choice of postage options. State what the costs will be with registered post and leave it up to the buyer to make that decision of if they want to purchase at that price with that postage cost. It does NOT cost the seller a thing to post the item as the buyer has paid for it so do not offer a choice.

Yep. When buying and selling, it pays (literally) to think about how you can best avoid getting screwed by either not receiving the item you paid for or a buyer making a false claim about the item.

For a $20 sale of a large letter sent with Reg. Post (putting in the exact postage cost in your listing too), it comes to $17.09 after the fees. Could be worse...

I just don't post OS...I can't be bothered... too much trouble. 

Maybe in the future I will give it a go but for now I am happy