First up, let me tell you I feel your pain and I know what you went through when this happens. I'm also not going to simply spit back at you eBay policies or stuff that makes you feel worse. Despite what others have said, it is still a very grey area when articles arrive damaged because the delivery company is an equal partner in this equation. If you use Australia Post, we use eParcel, there are procedures which you and the customer have to follow for damaged articles. Australia Post requires evidence via the customer taking the damaged article to their local Australia Post Office, with packaging.

I've never experienced a customer who does not want a good outcome when a damaged article arrives. They generally buy something for a reason and they don't want the hassle of a problem involving the overall transaction unless there is good reason. So it's important to be there for the customer and provide empathy with a sorry for the current situation and to quickly assure them that it will be sorted out quickly.

At this point it is important to have the customer send a picture of the item and its damage, including the packaging so you have evidence right from the start. It also helps to verify whether there is damage and how bad it is. This sets the scene for possible negotiation, mediation, working towards a solution that best serves the customer and yourself as the seller given the situation. This may involve checking how bad the item has been affected and whether you can offer a complete replacement or a part refund. Let's face it, if your profit margins are set right, you should be doing business in a way that covers you if disasters happen. That may not just mean you have a 100% or more margin but it may take into account the number of successful transaction compared to the number of problematic ones. You should be always prepared for a situation whereby you might need to send a replacement which may not cost you the earth to do so. Sending a replacement also is a quick circuit breaker. The photographic evidence, along with the customer's complaint should be enough to get Australia Post to at least refund the cost of freight because they can not by law charge you for a service if it did not happen as it should. They are not in the business of breaking goods and/or damaging articles they are meant to deliver.

So, first up, establish a good line of communication, even try phoning because that can also work wonders so the customer feels your attentiveness and willingness to get it sorted out to their satisfaction.

If it reaches a point whereby the customer is not wanting any compromise and refuses to take the damaged article and packaging to their local post office, then you have that to take to Australia Post for compensation. if they are willing to take the damaged article into Australia Post, you also have a case for compensation against Australia Post. In some instances it is not worth asking the customer to return the item. They can leave it with Australia Post for binning. From this point on, you either replace the item or your provide a complete refund and then you make a claim against Australia Post.

All up, as a seller, you won't be left in the lurch financially for the entire transaction but it will be one of those occassions we all must plan ahead for and hopefully they do not happen too often. What makes a good seller is how well they behave and act when a customer is not happy.

All the best for the future and I hope you continue because for someone to be selling for such a long time you must be doing a lot that is right. Every now and then we sellers get tested and there has never been a worse time selling on eBay as is now, given the pressures, constant eBay changes which usually always demonstrate their own self-interest, marketplace and economic conditions.