Buyer protection fee clarification - does it cover the seller too?

[abowan2012]

Can someone explain how the buyer protection fee works?

I have a silver jug that I am selling for £700 and was originally planning to charge the buyer for Special Delivery so the full amount was covered.  eBay has changed it to postage for £3 which doesn't cover the full amount in a claim from Royal Mail.

The buyer gets their money back if it goes missing but what about the seller? They don't pay out until an item is delivered so who compensates the seller?

[**peaseblossom**]

When you use Simple Delivery you are protected if the item is lost/damaged from the point the item is scanned into the carrier's delivery network and until it's marked as delivered.   That means ebay will pay the refund, not you, when the buyer opens a "not received" case or the item is damaged in transit. 

[papso22]

You are confusing the buyer protection fee with the entirely separate seller protection given by Simple Delivery.

[abowan2012]

Yes, but eBay only pays out to the seller when the item is delivered. If an item goes missing, the buyer gets their money back but who refunds the seller for their loss?