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The Record groupset was £525, so the seller is going to have to find £475 of that, therefore I reckon it would be their property if it turns up.
That’s a shame but ultimately not your fault, and 100% theirs for not insuring properly. If they haven’t confirmed they sent it RM 2nd class, then it’s possible they made the correct decision behind the scenes and paid for the better insured postage, no?
You’re not asking, but I’d say the right thing to do is to get all of your money back from the seller, and help the seller out when/if the groupset turns up. When/if the groupo does turn up, which isn’t guaranteed, you’re not obligated to purchase it anew from the seller, so you wouldn’t have to pay back the refund: once they’ve issued the refund, that initial specific sales agreement is done. You could choose to purchase it again, or send it back, or come to some other arrangement with the seller. You could even make this arrangement in the same message you send when you start your refund request process.
The Record groupset was £525, so the seller is going to have to find £475 of that, therefore I reckon it would be their property if it turns up.