1) Amazon sucks. I have my own hell story. I bought a Barnes and Noble membership (I loathed them before) just to avoid Borders, which is joined up with Amazon.

2) As a frequent ebayer and former Amazon customer, generally sellers will tell you "tough luck" and then you basically have to go to the website as a mediator. As a seller, once you mail it and you didn't mess up the address/postage/packaging, all fault lies on the post office from that point forward.

3) Its possible that her mail was tampered with. Someone I know ordered a Kindle from Amazon and it never arrived. Then she started noticing charges for things like "Twilight" (if you knew her, this would be hilarious). Apparently the kindle did arrive but was swiped from her front porch. Amazon refunded her the fraudulent charges for the e-books and sent her a new Kindle. That's the plus of dealing with large retailers like Amazon, they will easily eat that cost. In your case however, if there is no insurance involved, the buyer is probably SOL.