Missing shipment

Since the payment was processed via Paypal, I called their customer service to learn how they handle issues like this. The agent said that for any Paypal transaction over $500, the item must be shipped with Signature Required. Otherwise, the seller automatically assumes full responsibility for any losses. The agent was very clear on this. I’m still hoping that the package will show up.

Okay, you've established that you have a winning case. If the fellow you're dealing with is a stand up guy you won't need any of that. He'll just refund. If however, it's not that easy, watch your time limits. If your Paypal purchase was funded by a credit card you have a year to file. If however your Paypal purchase was funded by your Paypal balance, your time frame to file is much shorter. Stay in contact with Paypal and don't exceed your time limit because you could turn a winning case into a loss by taking too long. It's best to deal with the seller directly and give him a reasonable chance to do the right thing. Be careful though if any delay should compromise your time to file for recompense.

Update: The package is still MIA. I no longer trust that a tracking # will be sufficient security for shipping a package - whether it be Fedex, UPS or USPS. From now on, as either a buyer or seller, I will gladly pay the additional $3 for Signature Confirmation for any package of any value over $20 - even if I need to go to the Post Office later in the week to pick it up. It’s cheap insurance for avoiding major headaches. As @jmcgrogan2 stated, the shipper has no skin in the game. If the package is mis-delivered, lost, or stolen; it’s money out-of-pocket for either the buyer or seller. Also, I will only use Paypal.

@jnovak is correct. Paypal has all sorts of rules in place. Those rules are meant to protect everybody - the buyer, the seller and Paypal. Curiously, when I spoke with the agent, she repeated several times that $500 was Paypal’s threshold for requiring a Signature Confirmation. She was incorrect. In fact, Paypal states on its website that it is $750. Thx again @kqvkq9.

Anyway, I’m still hoping that the package will miraculously show up.

steakster,
Thanks for the update and additional information.

I have packages that are still in transit since couple years ago. Tracking is virtual that may be far from real.
You can update tracking any time you want, but it ain't guarantee what factually happened.