This guide is a warning to those in UK who ship items via Royal Mail Special Delivery.
My experiences show that if the transaction goes sour, Paypal will not honour its much vaunted Seller Protection policy, on the basis that for Seller Protection to be successful, there must be an Online Tracking facility showing the address the item was shipped to. Royal Mail services DO NOT have full address tracking, allowing PayPal to deny any compensation. This is despite Paypal still showing Royal Mail as a recommended shipping method.
My situation was that I sold a phone to a Verified Paypal member, to his verified address. I sent it Special Delivery. Six weeks later Paypal informed me it was reversing the transaction as the buyer had used fraudulently obtained funds (but would not elaborate further). I lodged a compensation claim which PayPal refused as the online tracking did not show the buyers full address. A complication in my case was that the Royal Mail online tracking system failed, but RM sent me (and Paypal) irrefutable proof that the item had been delivered, showing the buyers signature of receipt.
After four weeks of prevarication, requests for copies etc, they came back with the original answer: to obtain Seller Protection, the online tracking must show delivery to the buyers verified Paypal address.
So, if you want the benefit of seller protection, use a courier service which shows full address tracking.