Until the doorstep. Then it becomes a carrier problem.
The legal default, in one line
Under UCC §2-509, a shipment contract passes risk of loss to the buyer when the goods are duly delivered to the carrier at the origin. In practice almost all consumer sales are shipment contracts, and almost all consumer laws (state deceptive-trade acts, credit-card chargeback rules, the FTC Mail Order Rule) override that default and place the risk on the seller until the buyer actually receives the goods. That practical rule is what every marketplace bakes into its policy.
There is one contract term that flips the burden: shipping FOB shipping point, expressly agreed with the buyer. Consumer sales rarely qualify because the term has to be conspicuous and mutually agreed, not slipped into a shipping notice after the sale. Business-to-business orders are a different picture.
Marketplace policies, side by side
| Platform | Who refunds the buyer | Seller protection |
|---|---|---|
| eBay Money Back Guarantee | Seller refunds; if the seller does not act inside 3 business days, eBay steps in | Seller Protections apply when the seller ships within stated handling time and uploads tracking from an integrated carrier that shows delivery before the estimated delivery date |
| Etsy Purchase Protection Program | Etsy refunds the buyer directly up to $250 (including shipping and taxes) when the order qualifies, effective July 9 2026 | Seller not held responsible when they shipped within stated processing time to the address on the receipt; amounts above $250 revert to the seller |
| Shopify Payments merchants | Merchant refunds; Shopify does not run a marketplace-wide protection program — the buyer's remedy is a card chargeback if the merchant declines | Depends entirely on the store's own policy; a chargeback with proof of delivery through Shopify Shipping's carrier data is defensible |
| PayPal-processed sale | Merchant refunds; PayPal Purchase Protection reimburses buyers for undelivered items after a dispute review | Seller Protection covers eligible items with proof of shipment; loss without tracking is on the seller |
What a seller can do
Ship on time, with tracking
Every protection program hinges on the parcel leaving inside the stated handling window with a tracking number the platform can read. Late shipment or missing tracking hands the loss to the seller before the marketplace even looks.
Declare value above $100
Carrier claims cap at $100 unless the shipper bought more. For a sale worth several hundred dollars, that gap comes out of the seller's margin. Declared value on the label is what preserves the recovery.
Refund the buyer first, then file
Do not wait for the carrier claim to close before refunding a marketplace buyer. Marketplaces will refund the buyer for you and debit your account; refunding first keeps the account rating intact and the recovery is filed in parallel.
What a buyer can do
Wait the platform's stated window before opening a case — eBay counts from the estimated delivery date, PayPal similarly, and Etsy opens a case 48 hours after the buyer's first help-request message once the estimated delivery window has passed (etsy.com/support-and-trust, read 2026-08-22) — the separate seven-day mark on Etsy is what makes an order count as late for Purchase Protection, not when a case can be opened. Check the address on the packing slip against what the platform passed to the seller; a mistyped ZIP is the most common non-lost non-delivery. Keep the case open until the refund posts, even if the seller promises one directly, because closing the case removes the buyer protection.
If the marketplace declines the claim and the sale was on a credit card, a card chargeback under Regulation E's non-delivery ground is a fallback the card networks generally support, provided the timeline to file has not lapsed.
Where these policies come from
- eBay, Money Back Guarantee policy and Seller Protections. Read 2026-08-11.
- Etsy, Purchase Protection Program for Sellers. Effective July 9 2026, read 2026-08-11.
- Uniform Commercial Code §2-509, risk of loss in the absence of breach — the shipment-contract default cited above.
- FTC, Mail, Internet, or Telephone Order Merchandise Rule (16 CFR 435) — the seller's federal obligation to refund an order that does not ship within the promised or default window.
Common questions
Is the seller or the buyer responsible for a lost package?
In the US, the seller owns the risk of loss until the package is delivered. That comes from the UCC's shipment-contract default and is echoed by every major marketplace policy. The buyer's remedy is a refund from the seller; the seller's remedy is a claim against the carrier.
Does adding tracking shift the risk to the buyer?
No. Tracking that shows successful delivery shifts the burden of proof under most marketplace protection programs, so the platform will not force a seller to refund a delivered order. It does not shift the underlying legal risk before delivery.
What does eBay's Money Back Guarantee do here?
eBay refunds the buyer and, if the seller shipped on time with tracking from an integrated carrier that shows delivery, eBay's Seller Protections cover the seller against that item-not-received claim. Without valid tracking, the seller absorbs the loss.
How does Etsy handle a non-delivery case?
Etsy's Purchase Protection Program, effective July 9 2026, covers up to $250 USD (including shipping and taxes) for orders that meet its requirements; the seller is not held responsible when the coverage applies. Amounts above $250 fall back to the seller. Buyers open a case 7 days after the maximum estimated delivery date and have 30 days from then to file.
Do I have to buy shipping protection?
Marketplaces do not require it, and the carriers include $100 of coverage on most parcel labels. Above that value, added declared value is the only way a claim can pay out more than $100. Without it, a lost high-value package pays only the bundled $100 from the carrier and the remainder comes out of the seller's pocket.