You can keep shipping via Royal Mail First Class recorded regardless of how much the item costs, however they will only cover up to the value that the service provides. If it covers up to £50, and the lost item is £80, you'll be the £30 difference down.
It is worth noting that Royal Mail only compensate the cost that it'll cost YOU to replace the item. So for example if you sell the item at £60, but it only costs you £30 to buy from your supplier, they will only compensate you the £30.
They do ask for copies of invoices also or receipts.
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