
Having been caught out one before, I have to agree with PippaJ and Charm. It is very easy to refund the purchaser's money through PayPal and ask them to pay cash on collection. PayPal will definitely find in their favour if they say the item was never received or was faulty, etc.
In my case I was able to provide written proof of collection, however as it was not official, ie from the Royal Mail (collected and signed for by purchaser) PayPal still found in favour of the purchaser and refunded them, directly from my bank account.
Good luck with whatever you decide.
Jenny