I am a heavy Paypal user as a seller and I can confirm that it is easy to get burned by Paypal as a seller. All they want to know is the tracking number, nothing else counts. I have to say that's somewhat reasonable because every idiot and their dog will come and argue over the item to them, but the risk is with the seller. My buyers have the option to choose non-trackable non-insured shipping with the options clearly explained. They pay very inexpensive shipping, but if something does not arrive then I am the one picking up the tab…
I think it only makes sense if you sell a lot to unknown/untrusted parties, so if one in 100 transactions go awry you have 99 that went well and hopefully they cover the lost one.
Good luck with your sales.
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