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@theemporiumofeverything wrote:

all parcels sent via australia post now have a tracking number included, the number is on the printed sticker they put on the parcel if it is not in a parcel post bag.

Stress to your buyers that if they don't choose registered post or insurance for items over a particular $$ value there is no responsibilit on your part if the item goes missing or arrives damaged. 

If a customer says they haven't received an item and there isn't a tracking number, ring Australia Post and ask them to check with the closest post office of the buyer, they will hesitate to do this, but be polite and persistant. 

I don't have many items that go missing, but I never refund until I can confirm whether the item is in fact missing. I have been scammed one too many times. 

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the OP sends a lot of goods by large letter that don't have a tracking number

It is pointless to ask buyers to pay additional $$$ to upgrade to registered post for letter post - it is the seller that carries the risk with unregistered letters.

Regardless what the seller insists on, if they can not provide proof of post in a paypal claim they will have to refund.