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Yup, that's what I did with Ortisai. I eventually got my merch, but sans CD key for one, and information I needed to use the other. Hmm, this was in November sometime that it got started.
Of course, since he isn't verified through paypal, I pretty much lost my money on that deal, unless of course, he tried to buy something with paypal in the future, I might get some satisfaction in that regard.
Personally, I think paypal should have a way to hold the money until the buyer responds with a "receipt of delivery " to avoid any issues like this. Any honest person would have no problems selling this way, especially if the seller had a chance to authorize a refund if the buyer claimed non receipt of goods.
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do it right, do it yourself. If that doesn't work, prepare to pay for your mistakes.
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