What do you all think of this narrow situation? First, let me say that in general in business it is the seller's responsibility to deliver the goods. With eBay and PayPal it is definitely that way. Usually you see in eBay auctions a notice about "$2000 (or $200 sometimes) PayPal Buyer Protection." (The buyer is also protected with his option to "charge-back" on his credit card.)

Even when there is a big "$2000 PayPal insurance/buyer protection" notice there, sellers often give a big warning about insurance being "optional" and the buyer being responsible for lost-in-the-mail stuff. As a buyer I never opt for insurance when I see that PayPal notice. The seller should pay for the insurance as a cost of business, or jack up his price to cover the insurance, or simply force the buyer to pay for postage-insurance -- because if the item is lost or damaged in the mail, PayPal will force the Seller to prove successful delivery or make good on the claim.

I have often emailed sellers, telling them that their optional-insurance-notices are worthless when there is a "PayPal $2000 Buyer Protection" notice in their auctions. They either ignore, resent or don't understand my friendly advisory.