A bit like this deal and also requires activation.
Copying and pasting from the PayPal website:
Get your money back on return shipping.
Activate Refunded Returns. You’ll be eligible for a refund on return shipping costs from your next PayPal purchase.
If you return an eligible purchase, log in to your PayPal account to find the original transaction.
Submit a request with proof of return** within 30 days of return and 150 days of purchase. Receive your refund, usually within 5 business days.
more conditions:
*Up to 8 refunds per PayPal account per year for eligible purchases. A cap of $45 per refund request applies. The Refunded Returns service is offered by PayPal Pte. Ltd, in partnership with TELUS International Europe, the service provider. See the General Conditions of Use and Privacy Policy for further information.
**Return shipping receipts require the seller’s address and the amount you paid. If your receipt doesn’t include the seller’s address, we also need a photo of the package you returned, showing the seller’s address.
EDIT:
Make a claim link:
https://www.paypal-returns.com/hc/en-au/requests/new
In the email today, they also announced the Pre-Trip Cancellation Cover, which you have to activate.
Pre-Trip Cancellation Cover
Now when you pay for your trip with PayPal and have activated Pre-Trip Cancellation Cover, you may be able to claim up to $500 on pre-paid non-refundable transport and accommodation costs if you unexpectedly need to cancel your trip. Terms and conditions apply*.