Why has Paypal sided with the scammer?
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The 100% authentic product I order arrived as a counterfeit product. After days of back and forth, the merchant has agreed to provide a full refund so long as I return the product - no issue, and pay the shipping costs - ISSUE. The only action/communication option left in the dispute is for me to enter tracking details of the parcel. The scammer website is still active, so other people are also going to be caught. I thought by using PayPal I would be protected. Apparently not.
Has anyone got any suggestions of what now? How do I contact someone at Paypal?
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You are protected within the conditions of Paypals buyer protection policy.
In the event of a dispute you choose your seller and not Paypal so you need to bear in mind possible return trackable costs before you go ahead and buy from that seller / country.
Paypal state this >>
IMPORTANT: You may be required to return the item to the seller or other party we specify as part of the settlement of your claim. PayPal Buyer Protection does not entitle you to reimbursement for the return shipping costs that you may incur.
You also have the option to do a chargeback via your card issuer instead of a Paypal dispute if you funded your Paypal payment via a credit card.
Advice is voluntary.
Kudos / Solution appreciated.

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