So, I don't sell on Ebay that often (in fact, this is the first time I have done so in probably two years), but after posting an older import game with a controller accessory for sale on several message boards over several months without much interest, I decided to go ahead and list the item. The item sold within an hour using BIN and the buyer paid with Paypal instantly. Unfortunately, the buyer's address on Ebay (and therefore the way the automatic shipping calculator made it's calculations) was literally within a hundred miles of my location, but the actual Paypal verified shipping address was several states away, so I basically ended up eating $4 in additional shipping costs. Content with the quick payment and the fact that the item had sold, I went ahead and ate the extra shipping and didn't say anything to the buyer. The day after payment was received, I mailed the package out via Priority Mail with tracking and didn't really think about it again.

Late last week, the package shows up back at my house with a note from the USPS saying the buyer refused to pick up the package from the post office. They apparently left multiple pick-up slips over a period of a month and the buyer just ignored them.

I sent the buyer a message via Ebay and explained that the package had come back and that I wasn't sure why he hadn't picked it up. He replied three days later that it was a postal mistake and that I should ship it again. Having already lost $4 and not wanting to spend another $12 to ship the package again, I replied that I was happy to ship it again, but that he would need to pay for the costs to re-ship the package. It has been several days now and no response.

I guess my question is, what should I do? He still has two weeks to make a Paypal claim and although my tracking shows it made it to the post office in his town and delivery was attempted multiple times, technically it wasn't delivered. Has anyone dealt with a similar situation in the past? If so, what did you do?