Problems
When an eBay package is lost or arrives damaged
eBay protects sellers who can prove delivery. That takes tracking from an integrated carrier, and signature confirmation on orders of $750 or more. Set it up before the problem, because you can't add it after.

A lost or damaged eBay package is handled under the eBay Money Back Guarantee. If you shipped within your handling time and tracking shows delivery, you're protected from an item not received claim. If not, the buyer gets a refund of the item and the original shipping, and you may have to repay eBay. That's eBay's policy as of September 2026.
What protects you before anything goes wrong?
Five things protect an eBay seller before a package goes missing: integrated tracking, signature confirmation at $750, the checkout address, the service the buyer paid for, and a record of the item's condition. Set them up when you buy the label, because signature confirmation and integrated tracking come with the label, not after it.
- Tracking from a carrier integrated with eBay, uploaded to the order, showing an acceptance scan.
- Signature confirmation on orders of $750 or more. The $750 counts the whole order, shipping and tax included. eBay International Shipping orders are the exception.
- Shipping to the address from checkout. eBay says ship only to the address the buyer gave at checkout.
- The service the buyer paid for. Shipping with a slower service than the buyer picked at checkout costs you the protection.
- A record of the item's condition. Your listing photos can do this, which is one more reason to shoot a full set.
What does eBay need to prove delivery?
eBay needs a tracking number from an integrated carrier, a delivered or attempted status, the delivery date, the recipient's address with a matching ZIP code and, on orders of $750 or more, signature confirmation. The tracking number has to be uploaded to eBay with a shipping scan before the latest estimated delivery date. An item not received request closes on its own within 24 hours if tracking shows delivery to the buyer's ZIP code.
What should you do when a buyer says it never arrived?
When an eBay buyer says a package never arrived, you have 3 business days to answer with tracking, a delivery update or a refund. Check the tracking before anything else, then work through it in this order:
- Reply within 3 business dayseBay gives the seller 3 business days after the report to respond with tracking, a delivery update or a refund.
- Check the trackingDelivered to the buyer's ZIP code closes the request automatically within 24 hours. A stalled scan can be a delay, not a loss.
- Refund when you can't prove deliveryeBay tells sellers to refund when they have no integrated tracking showing delivery, or when the package hasn't moved for 7 days or more.
- File the carrier or insurance claim separatelyMake the buyer whole first. The claim runs on its own clock, and it's your money, not theirs.
If you used an eBay label and the package turns up after you refunded, eBay reimburses you. Buyers can report an item not received up to 30 calendar days after the estimated or actual delivery date. Sources: the eBay Money Back Guarantee policy, eBay's seller protections, its signature confirmation policy, its item not received help and its tracking help (for the 24-hour auto-close), checked September 23, 2026.
What happens when an item arrives damaged?
When an eBay item arrives broken, damaged or faulty, the buyer can return it for a refund even if your listing says no returns, and the seller pays the return shipping. eBay tells buyers to accept the delivery and report it when a package arrives empty or damaged.
Ask for photos of the damage and of the outer box. The outer box can show whether the damage happened in transit.
Does insurance cover a lost or damaged package?
Insurance covers a lost or damaged eBay package up to $100 on most labels without buying anything extra: USPS Priority Mail and Ground Advantage, UPS except Ground Saver, and FedEx. Past that you need extra coverage from the carrier or ShipCover.
| Label | Included | Extra coverage you can buy |
|---|---|---|
| USPS Priority Mail and Ground Advantage | Up to $100 against loss or damage | USPS: up to $5,000. ShipCover: up to $15,000 domestic |
| UPS | Up to $100, except UPS Ground Saver | UPS: up to $999. ShipCover |
| FedEx | Up to $100 | FedEx: up to $1,000, except Ground Economy. ShipCover |
| eBay standard envelope | $20 per order, up to $50 on combined orders | None listed |
Sources: eBay's shipping insurance help, the ShipCover page, the ShipCover terms and USPS DMM 503.4.2, checked September 23, 2026. ShipCover is third-party insurance through Parcel Insurance Plan, sold on eBay Labels. eBay's pages disagree on its starting price: $1.49 per $100 on Seller Center, $1.70 in the help center. The rate card shows $1.70 for USPS domestic and $1.49 for FedEx and UPS.
Claim timing differs by page. eBay's help says wait at least 7 days after the transaction ends to claim for damage and 30 days after the estimated delivery date for a loss. The ShipCover terms count from the effective date of coverage: 7 days for damage, 30 for a loss, and file within 90. For eBay's standard envelope, the help page says wait 30 days for a lost claim, the terms say 15, and both say file within 90 days.
eBay lets you build insurance cost into your shipping price, but not charge it as a separate fee.
When is a lost package not really lost?
A package with stalled tracking isn't always lost. It can be delayed, mis-scanned, left with a neighbor or held at a depot. Before you treat an eBay package as lost and refund, check four things:
- Check whether tracking just stopped updating. It can catch up.
- Ask the buyer to check with neighbors, any safe place, and the mailbox for a notice.
- Confirm the address you shipped to matches the order.
- Give it the 7 days of no movement that eBay itself uses as the refund line.
Why do packages keep arriving damaged?
When eBay orders keep arriving damaged, check the packing before you blame the carrier. One broken item may be chance. A rule of thumb: three in a month points to the packing, such as an item that can move inside the box, no cushion underneath, untaped seams, or a box too weak for the weight. Nothing should shift when you shake the sealed box. The supplies list covers the basics, and service choice matters for fragile items.
What happens if an eBay package is lost in the mail?
Do I need signature confirmation on eBay?
Who pays return shipping when an eBay item arrives damaged?
Does ShipCover insurance cover coins?
Disclosure Shipping for Sellers is published by the team behind FlowLister, AI eBay listing software that turns item photos into complete eBay listings, shipping included. It's AI, so it misses things: weigh and measure the packed box before you trust any shipping number, ours included. We make FlowLister, so read this as a disclosure, not a recommendation.
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