Screen archives is an optional extra charge worth taking. I have had one parcel go missing somewhere in New York, had I not taken the extra cost of postage then I would have been royally screwed.
(its worth noting here that SAE T&C on this are technically illegal under UK law and as the goods are ordered from a PC in the UK the argument might hold water with a credit card company.)
As someone who sells online there are people out there in the uk and overseas who actually do make a habit of opening disputes and claiming refunds on every order they make. Personally I have no problems with a fair price to send something tracked and recorded. When stuff goes like this you can submit the tracking number to paypal and the dispute will usually go in the sellers favour if they can establish delivery like this.
As an advisor in some instances I have actually advised sellers to consider small claims proceedings under BOC. Submit the evidence in front of a judge and if the judge finds in the sellers favour then the customer gets a CCJ on their record and their credit is f***d for years. It has even worked as I had an ebay customer who had this happen, their mortgage fell through.
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