The Perils Of Privatisation - Part X
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No best answer has yet been selected by johntheplamf. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.For all its faults and previous angry customers, PayPal cannot and does not try to settle disputes between vendor and purchaser. Proof of postage/despatch etc. is not the same as proof of receipt, so PayPal have taken the reasonable course. You will have to establish if the purchaser has the goods, and if they don't then who does have them, and gain payment in that way.
If you were selling through Ebay (or even if you are not) the advice there is to use a delivery agency that tracks your parcel and requires a signature to confirm receipt. I'm afraid if you just used the normal post then you have most likely lost your goods, as you cannot establish whether or not your purchaser received the parcel.