Legal Question: Who carries the loss?

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Fudmucker

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Scenario:
Seller advertises a product for sale.
Buyer enters into an agreement to buy and pays for the product in full, including postage
Seller posts item...

SA Post Office doesn't deliver package.  ::)

Question:
Who carries the loss on the deal - Seller or Buyer?
One principle I recall from contract law from decades ago is that delivery (possession) must take place for ownership to transfer.
If delivery does not take place, then the Seller cannot transfer ownership to the Buyer.
If possession and ownership is not transferred, then has the Seller benefited unjustly without meeting their obligations in terms of the sale?

As the process of packaging, labeling and posting the item is entirely within the control of the Seller,
is the Post Office acting as delivery agent of the Seller or the Buyer?

Inputs appreciated, thank you!

 
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