Lost package protection?

A buyer who paid with DC just wrote and said that while the USPS tracking number shows that her package was delivered on 10/26, she never received it. I advised her to check with her mail carrier and post office and to let me know what she finds out. My question is this: if the USPS information shows that it was delivered, am I protected? In other words, am I obligated to refund her money or does DC protect us both?
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Re: Lost package protection?

You are protected from being forced to refund by Etsy. you are free to refund, replace, or neither based in how you wish to run your business. However, you are not protected from the consequences of your decision. If the buyer feels at it was not a good transaction, they can leave poor feedback.
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