If a package is lost or damaged in transit, they must receive a full refund for that item. If a seller uses a label from a different service (i.e. not a Kidizen label), they are responsible for the refund back to the buyer. If a Kidizen label is used, Kidizen will cover the refund back to the buyer if the package is lost in transit. Packages damaged in transit may be covered on a case-by-case basis when a Kidizen label is used depending on how the order was packaged. It is the responsibility of the seller to package the order in packaging that will withstand the rigors of transit. More on the additional benefits of purchasing a label HERE.