PayPal Closed My Dispute After I Returned Item to Seller -- Now I am out $129.85?!

[jayersgould]

I use PayPal because of its "Buyer Protection" policy.  I purchased an MP4 player from China.  It took about a month to receive the item.  When I did, it did not work properly, so I sent it back to the seller at the address they provided.  I opened a PayPal dispute and escalated it to a claim.  I paid return shipping in the amount of $13.25 for USPS International Priority Shipping with Delivery Confirmation.  The item's last recorded whereabouts were Chicago, IL.  I suspect it is in China right now, but no further tracking info is available.  PayPal closed my case today and refused to refund any of my money.  This is total crap.  I have am out $129.85 and have nothing to show for it other than outrage at PayPal for denying my claim and stealing my money.  I will continue to pursue this issue and will not stop until my money is refunded. 

Anyone else have a similar experience?  How did you resolve it?

Your input is greatly appreciated.

[fws]

I can provide similar frustration from a seller's perspective.  Multiple foreign and some US buyers have reported nonreceipt at a much higher rate than is credible. I can show I shipped an item, but not that it was ever received, although "tracking numbers" are provided, there is no assurance that the items can actually be tracked, either here or abroad, unless you use registered mail, although I am not sure that always works, either.  Paypal finds for the buyer, although I have done nothing wrong. I cannot collect insurance unless the buyer cooperates, which they have no incentive to dom so I am likely to lose these premiums as well.  Making insurance payment and  collection  the responsibility of the buyer would be right, but Paypal will not do that. Sellers are very easily defrauded this way.

[polt]

I bought a volume control through papypal.  The seller advertised it as brown and new.  recieved white missing some parts.  I filed a cliam and got strung along by both the seller, he claimed to be shipping replacement trims, and paypal.  I cannot find any record of this transaction in my paypal account and customer service is completely unresponsive.  Finally, they closed my dispute. 

[jayersgould]

I have contacted PayPal customer service 2 or 3 times now by email and have yet to receive any sort of response.  I will continue bugging them until something gets done.  This is unacceptable and inexcusable.  They claim to have buyer "Purchase Protection," but despite following all their guidelines, they have failed miserably.