Thanks for the responses.

I thought about just refunding her. It's only a small amount (under $5) but I guess, due to principle, I wonder why would I do that if I have done the right thing and posted with tracking. If I refunded everyone who said an item didn't arrive when tracking says it did, I'm wasting my time.

I'm not saying I think my buyer is dishonest, but I feel this should fall with Australia Post and the buyer. Her local post office could simply have put the parcel on her letterbox and someone took it as they walked past (my postie does this often). If that was the case, the problem is between the buyer and her local PO.

I'm honestly not wanting to be difficult, or get out of refunding her, but at the same time, what's the point of having tracking if I choose to refund any buyer who claims their item didn't arrive, even when that tracking says it did.

I have my lodgement receipt for the item, so I have the proof required for PayPal so I'm not concerned about "losing" a dispute. I guess I'm just wondering what to do morally.

I know *I* have done the right thing, and it's very possible the buyer hasn't done anything wrong either. I can refund and move on, which just makes a mockery of the whole tracking option, or tell the buyer to take it up with her local post office and hope that doesn't come back and bite me in the backside.

It's time like this I remember the awful part of selling on eBay.