I believe its covered under a buyer protection scheme, where they will refund shipping up to £15. I cant remember the link, but I have seen it. It has been running for a few years. I think you have to pay, but then get it refunded.
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I am going through something similar. I collected the evidence in the form of screenshots of everything, proof of PayPal info, proof of product bought, proof of tracking number, proof of item received. If you have a tracking number with somone else's name on it and it doesn't match your PayPal address, surely PayPal will see that it is not your item.
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