you can file postal fraud if the item is broken or doesn't arrive at all.
HUH?
Why would it be 'fraud' if the item arrives broken? Damage in transit is more likely to be because of poor packaging, which is the responsibility of the seller. But not fraud.
Non-arrival, providing the item was sent in the first place, is the responsibility of the carrier.
In both cases, from the point of view of the recipient, a refund would be owed by the seller, not the carrier.
If you are trying to say the item is not as described, I very much doubt USPS would take any responsibility at all.
If an item does not arrive, the buyer can claim through eBay or Paypal or his credit card. If the seller cannot prove delivery*, he is required to refund the buyer.
If an item is damaged in transit before arriving in Kentucky, the GPS will apparently refuse or return it. If they damage it, and all too often they do, GPS will refund the buyer; again through eBay or PP.
What you fail to realize is that the postal insurance is payable to the guy who bought it. So if you receive a broken vase, the seller has to make the claim to USPS, and any payment would be made to the seller. And then the seller might refund you.**
*The main reason GPS is popular with sellers is that he only has to prove delivery to the GSP plant in Kentucky. If the item is late arriving from there, GPS will refund the buyer through eBay or PP.
** In real life, of course, you would have been covered by eBay or PP, and the seller would fight it out with USPS on his own.
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