I can guess at what has happened, I have heard of stuff like this before, in one instance the postman took the parcel to the wrong house, and some unscrupulous person claimed the parcel was for them, so yes they did get a signature, but it wasnt the right one, alternatively someone other than the buyer - but in the same house may have taken receipt of the parcel from the postman and signed for it and not declared the package was received, either way you ought to be filing for some kind of compensation claim from royal mail as the sooner you get that ball rolling the sooner you will get refunded, if you dont give the buyer a refund first then paypal will do it for you, plus you could end up with a case opened, bad feedback etc, is that really worth whatever the amount the item sold for? If you can afford to refund the buyer in the meantime then I would do it, and hopefuly either the item will actually turn up or you will get compensation from Royal Mail eventually, but it can take MONTHS the way they perform and you cant realistically expect the buyer to wait that long, but explain to them what you are doing, and keep them in the loop as I find people are more forgiving if they know what is happening, if you dont communicate then they will start to get suspicious and bitter, then its harder to dig yourself out of the mess. I know you havent caused the problem, and its ridiculous that you should have to sort it out, but this is what we have to do now to keep things on an even keel.
regards
Johnny
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