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easy maths calculation help

I buy something for 1.20 to sell online, i sell it 7.98£ inc delivery (3.58 for item and 3.48 delivery) . So they pay for delivery. I buy a postage label for 2.70£. The package is lost and I have to refund the customer their amount they paid. Is the postage label that I paid for a loss or not really as they initially paid for it ?how much is the total loss? i don't get my item back so know I have lost the original 1.20 but have i lost more than that?

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