I knew it was only a matter of time and it has finally happened. I sold a few items on ebay and shipped international registered post to Hong Kong.

The buyer contacted me after a few weeks to say they have not received the package. Registered International post gives no tracking on the Australia post website but I believe their system can track it a bit. Anyway to cut a long story short, after 7  weeks Australia post finally sent me an email saying they cannot find the parcel. (It was tracked to leaving Australia but no sign of it arriving in Hong Kong).

They say they are considering giving me compensation after I jump through a few hoops. It looks like I shall get a refund of the sale price plus shipping up to $100 which if true should get me back nearly all my money.

However if I refund the buyer (which I want to do as he has been very patient - no paypal dispute) I am out of pocket due to having no money and no items. 

Has anyone been in this situation? What have you guys done? Even if you have not been in this situation but have any thoughts about how to proceed I would like to hear it.

Thanks.