How does this scam work if I've already been refunded through PayPal?

[JWGdesign]

I purchased an item online (following a Facebook advertisement) and the item had not arrived within the specified time, so yesterday I issued a dispute through PayPal.  Very quickly, I was issued a full refund.  Today the seller provided a tracking number showing the package was delivered two days ago. I never received the item. This seems like a scam, but I don't understand how the scammer benefits.

UPS shows an item delivered to my city (it doesn't show the exact address), but I never saw it.  I can only think that a porch pirate (probably the seller) followed the delivery truck to swipe it so they could file a claim with UPS.  I can't see UPS falling for that though.

Personally I would rather have the item I ordered, but at least I've got my money back.

Does anyone have an explanation for this experience?

[sharpiemarker]

@JWGdesign 

Yeah, can’t see what the upshot is either.

The tracking number could be fraudulent. The street address might not be yours but an address in the same city. You can call UPS fraud dept and ask about that.

Make sure the refund is completed and not pending.

[JWGdesign]

UPS has confirmed that the delivery address was not my address, though it is the same city.  There is no legitimate reason for it to be different. My order clearly and accurately states the shipping address.  This has got to be some sort of scam.

Also, the UPS representative I spoke with said there was no way for her to add notes to that tracking number or shipping account.  I thought it might be helpful to UPS in the event of a claim against them.  Oh well.

Lastly, PayPal issued a full refund.  My credit card currently shows is as pending.  The refund it coming from PayPal, so I expect it will clear in a day or two.