"Actually, the normal claim process you cannot take the box to UPS/FedEx and ship it back. They have to send an agent to your home to inspect it and pick it up. I had this happen just about two months ago. The seller made arrangements for FedEx to come to my house and pick up the damaged unit. I had the seller return my money before I agreed to wait around for hours for FedEx to arrive. After all, he would not have shipped the package to me if I hadn't paid him first. The process works the same in reverse."
I know that they send someone out to look at the damages and to pick up the package. I just never thought about keeping the box until a refund was issued. I just figured them taking possession of the item was a prerequisite for any type of claim to be paid to you. That's good to know.
Just to note, I use Fedex ground for shipping audio components and the few claims I did have, got paid. And for the right amounts. Once it was established that there was, in fact, shipping damage, and confirmed what the real value of the item was (the items new list price, along with the price from the add or auction that it sold for), we got paid with no problems. I at least have to give them credit for that. Fedex did end up doing the right thing with all my claims. I think where some people have problems, is when they try to take advantage. I know people that always declare a value that is far more than what the item is worth. (I'm not saying that's the case here, its just a general observation.)