How to report a customer for fraud? Customer returned worthless item

[backyardtn]

Shipped customer product. Product was verified complete before shipment. Tracking shows customer received and accepted shipment.  Customer then files claim stating incomplete item. Paypal places hold on funds for this order. I accept offer to issue a full refund if product is returned to us. Customer fraudulently ships me a worthless item (NOT the product we sent them). We notify Paypal, but Paypal rules in favor of fraudulent customer all because tracking from customer shows delivered. How do I contact Paypal to notify of this fraud? Why is Paypal always favoring on the side of customers and not business owners?

Why can I not report this fraud to paypal?

[kernowlass]

@backyardtn 

Hard to prove who is telling the truth as its always one persons word against anothers.

In the event of an item received but not as described dispute the buyer gets a refund on trackable delivery of the item to the seller.

You can by all means contact customer services and appeal OR you could (if you have enough evidence) pursue the buyer in a small claims court if you have that in your country and the buyer is also in your country?

Failing that put it down to the risks of online selling where you always get the odd bad sale.