Just today I received a message from the Buyer saying the item I sent was smashed.  I sent it with Royal Mail as I have never had any problem with them in the past.  I had used Simple Delivery (not my choice but Ebay enforced) to post the item.  I googled the problem and it said the Buyer should raise a 'Return' and choose the option 'Arrived Damaged'. The Buyer did this and he was refunded by Ebay within 10 minutes at no charge to me.  I think refunds are covered by the fee that is charged to Buyers.  Perhaps I was just lucky...