Ok, I really need my beauty sleep right now but this one needs answering so here goes:

I called AusPost yesterday to ask about damaged item in the Post.

Now, the buyer sent me a photo of his damaged item and I took it with a grain of something white as I know my products and my packaging. I could tell that particular break could not have happened in the mail. Regardless, I played dumb and sent him another one straight away.

After that I called AusPost. I told them that the buyer is claiming item damaged in the post. What to do?

They said that the addressee needs to go to their local Post Office and fill out a form, leave the item there with all packaging, and, if approved, he will get compensation.

Now, the way I see it, if I wasn't happy to send another item to the buyer, he would be out of pocket with no item and, if approved, might have got a refund. Not so much worried about this particular case, but it's a worry when it comes to a lot of legitimate cases. 

I am the one who paid AusPost, the buyer is the one who paid me. I have an obligation to provide a service to my buyer (re-send the item) while Auspost has an obligation to provide a service to me (compensation if applicable).

Is this true? Is that the way it should be? How can I avoid my buyer ending up with my product + compensation? Or can't I? If the buyer is fair dinkum I may get compensation sent back to me by the buyer after the fact. But how do I know if this will happen?

Where's Alice when we need her?