He said he would ship as soon as he recieved payment but i also asked him to reply when he recieved payment and shipped.
Which the seller didn't necessarily agree to, maybe he will send the extra notification... or not.
He has done neither so i am not sure what i should do.
Try to be patient, wait.
I dont want to report him or give him negative feedback and then have the package show up a few days later. How much longer should i wait (if he doesnt reply) before i consider myself burned?
You sent a payment (via mail?) on Wednesday, allow reasonable time for it to arrive to its destination, worst case let's say early this week. Now allow time for your package to be sent and make its journey to you. Late this week, or early next week perhaps? I wouldn't start to feel burned until no package beyond 8/26 or 8/27, I think that's reasonable & deserving of a reply questioning the delay.
If you use a quicker payment system (e.g., PayPal) and request expedited shipping you will find the wait is shortened quite a bit, especially if you find a seller that always ships promptly.