I'm hoping someone here will be able to help or explain what can be done.

I sold a mobile phone on eBay and was forced in to using eBay simple delivery to send it with Royal Mail. I wasnt bothered by this as it seemed to simplify the process. I packaged the item and took it to the post office where I placed it on the scale and gave it to the staff.

A couple of days later the buyer contacted me and said they had only received an empty box with a tear in the side. I looked in to what to do and eBay simple delivery advice said the buyer should report it to eBay, so I asked them to do so. For some reason the buyer opened a return instead of marking the item as not received. I then couldnt do anything apart from wait to escalate the return request; this seemed to be the only way to get eBay to step in.

I waited the time and then escalated it. To me shock after escalating it eBay said they have refunded the buyer out of my funds. Isnt the point of simple delivery that both buyers and sellers are covered with shipping? I contacted eBay to see if a mistake had been made and was advised I need to appeal the decision. 

I did this and also spoke to someone on live chat. The person on live chat advised that within 5 days I would be refunded the money that was taken from me. I thought this was it dealt with, but 5 days passed and I received nothing. So I messaged customers services again and received a reply saying sorry but it can take 10 days... Okay I can wait if I need to.

I still received nothing so I messaged again. This time I received a message saying after a review my refund has been denied! eBay said they have reviewed it and the buyer provided evidence they received the package without the item. I've never disputed this was the case (I mean it is possible the buyer just stole the item and claimed to not receive it). But simple delivery terms state I should be refunded if the item is lost in transit dont they?

Anyway I decided to call up this time. I spoke to a woman on the phone who advised that nothing could be done and I was liable. I asked her to check the weight the post office recorded but she said they dont have access to that information. She said the buyer sent photos of an empty box and she suggested that I must have shipped an empty box. I asked her to escalate to a supervisor and she did.

The supervisor came on and said she has had a look and eBays decision would be final on it. She told me I should contact the shipping carrier and ask them what to do about the item being missing. I asked her if I would be insured as if I went to a post office to post something myself I'd get adequate insurance to cover it, but she said she didnt know the insurance situation and couldnt help me with that.

To summarise I'm now I'm left £250 out of pocket with no idea what to do.  As a seller I am now forced to use simple delivery, but if anything goes wrong with that delivery I am not insured? I dont understand how simple delivery is supposed to work? There is no way to sell and ship items on eBay now with insurance? If eBay dont rectify this my 19 years of selling are over.