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He either rejected receiving it (maybe if it had a custom charge on it, if so there would be something on the label?) or didn't pick it up. The only thing I would check is whether the address he is using is up to date on ebay and whether that is the reason behind this. Sometimes that happens, when people move and don't realise that the world doesn't automatically know that But it could as easily be the fault of one or other postal system.In any case, this transaction is over once the refund is through. To sell to this person again would require a new listing in my opinion, and I would iron out those detail things and ship tracked the next time.
Agree with the others. This happened to me several years ago on here but in my case the buyer never got any notification to pick up their package. They didn't want to have to pay shipping again (they were common ponies) so we agreed on refund of item price and half the shipping that way neither of us were out the full shipping amount as neither of us were at fault.
He still wants it and said tracking doesn't seem to have been the problem - The address was correct and he said usually there's a notification card from the postman to tell him to go collect it. I've said I can set up a new auction and write on the package to keep trying to deliver or leave it in a safe place - in Hungarian obviously. I'll set up another auction.