Irrespective of what option in terms of postage the buyer chooses and how you send the item, you are responsible for its safe delivery.  Registration protects you, not your buyer.  Consider it from this perspective, if you bought an item from a B&M store and the sales assistant broke it as he or she was placing it in a bag prior to handing it to you, would you reasonably expect to hear, "tough luck, you should have insured it"? 

Just refund mate if the item hasn't been received and was sent as a letter rate the least you can do is to replace or give customer service, I send things in letter rates to but if a customer doesn't receive I give them the normal speal and then replace or refund. Think about the time you are wasting on trying to save a few dollars do yourself a favour,

You've posted what... 1000 items without any problem?

 

Now you lose one which was obviously of low value, because you sent it as a letter rate.

 

So, divide the total value of this loss by the total number of sales you've made. OK.. One minifig at $7 / 1000 = 0.7 cents per transaction.

 

Just refund the buyer. Or better - send them a replacement (because by replacing you only lose your cost of the item, not your selling price)

Thanks for the input everyone, I get what your all saying re: buyers expectations etc. I am still confused as to why registered post is even an option seeing as it makes no difference to the buyer..

As for the comments re: you should not post lego that way etc..well give it a go, why should flat sturdy items not be posted that way if the buyer is Ok with it? Well withing australia posts terms and for one to go missing from hundreds, yeah I can safely say its a proven method..

Ah well what can you do sometimes. Im not paying for registered post costing more that the items are worth simply to 'protect' myself, it just seems strange. To me its good customer service to help out buyers that dont select that option, not an obligation.

Anyway I guess Ill just remove free postage from now on and charge for bigger packing (costing probably more than the items) but hey, if auspost manage to stuff that up Ill still be in the same boat..

I am still confused as to why registered post is even an option seeing as it makes no difference to the buyer..

Why are you still confused? You have been told at least 3 times why registered post is an option, but let me point it out again:

Registered post, is for YOUR proptection, the buyers get protection simply by paying with PayPal

If you don't want to send things by registered post, the at least send them in a small padded envelope.. Letters go through sorters at a great speed so if what is in the envelope isn't paper, then the envelope is probably going to rip

I learned this the hard way sending an SD card in an envelope and it got lost this way even though it was pretty thin.

Australia Post didn't stuff it up, you did by sending something in an envelope instead of padded bag

seems the only one NOT happy with your way of sending is YOU when you are asked to honour a sale that has gone wrong.

the reason you can allow choices is because some buyers prefer choices and occasionally you may come across a buyer willing to pay the extra to have registered post for all sorts of reasons, but bottom line is the Buyer does not Need to pay for registered post just to cover themselves against loss in the mail or loss thru damage in the mail,  that is what the Seller needs to cover themselves for.

What coops said.

The cost of replacing/refunding is doubtless more than offset by the higher sales you will have gotten because you DON'T charge higher postage rates.

Chuck 10c in a jar every time you post as a letter. When one goes missing take the refund out of the jar. Buy yourself something or go out to dinner with what's left in the jar at the end of the year.

So why then are we as sellers able to offer registered postage to the buyer for them to select, when apparently buyers will have no need to select that option, as they are being covered anyway?

The reason everyone says that line (regsitered protects the seller, not the buyer), is because, while not strictly true (at least not unequivocally), it's the most practical way to approach sales.

PayPal, in point of fact, don't provide unconditional protection for buyers, they just make it easier for a buyer to claim from the seller for non-receipt than it would be via any other way, so if you use and accept PayPal, it's easier to accept that.

Yes, due to the laws in Australia, a seller has an absolute right to say that they don't take responsibility for lost mail if registered is not selected, and they can make that hold up outside of PayPal's standard procedures.

Just to be clear, though, I do not recommend that particular Term of Sale, and practice the opposite.

Thank you ghost, thats all I was wondering 🙂 Not that im specifically going that way, it just seems a contradiction to have registered post option (in other words, charging a buyer more than they need to be paying). I also agree with cooper, makes perfect sense, yep its a loss here, already accepted that. Not running high margins anyway but Im not trying to live off the stores income either.

I am fully in support of always posting high value items registered, say anything over $100 value is most likely better posted that way no doubt

The options are there but you do not have to offer them.

If you want seller protection then you only offer a qualifying method.

If you would rather refund/replace and keep your delivery costs more competitive then you can offer both, personally as I have only had 1:500 untracked items go missing I only offer unregistered post for large letters under $50. For parcels I am using clic & send anyway so have seller protection.