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Shipping is always refunded, last I checked. The only instance I would say no to refunding shipping is in a case of a flake of a buyer who has changed their mind or had buyer's remorse. Then I might say they don't get the shipping returned ( I don't sell on ebay anymore ) if I even authorize a return for those situations. Anyways, part of selling is taking the chance of losing items and thus losing money. I don't ever ship anything without insurance overseas, period. That way, you get all your money back minus insurance costs, in case of a loss like this. It can be even more expensive and I've had argumentative potential buyers over it, refusing to want to pay the insurance. I've had to tell them the only way I'll send an item overseas without insurance is if you waive your ability to file for a refund if the item goes missing by sending funds via gift(then they can't open a claim). No one wants to do that, and they either pony up with the insurance, or they give up on the deal. To me, the insurance is always worth it, because things always have a way of getting lost when you don't have it.
I got an update.The buyer contacted me today and Night Glider has arrived!It took more then a month but she is finally home. No idea why it took this long.She said she tried to cancel the refund so I think that is pending now.What a coinsedence!