Another UPS Horror Story

I bought an Allnic T1500 amp here earlier this month. It was shipped in the original packaging by a UPS store from NJ to Seattle, fully insured. It arrived with a hole in the bottom corner and substantial damage to the amp (subchassis bent). I contacted the seller who refused my refund request and I processed a UPS claim.

UPS picked it up and did an inspection at their customer service center. They found no damage to the box (I have photos of the 6" hole in the bottom), did not look inside and have now sent it back to the NJ. Once again the seller has refused to refund my payment claiming he doesn't have the money to refund.

At this point the shipper will have my original payment plus the damaged unit, which might be repairable. Can a UPS claim be appealed? Can a UPS Store be sued in small claims?

I know I should never have given this back to UPS for "inspection". My best hope is that once it gets back to NJ they will ship it to the Allnic recommended repair shop in Pennsylvania and it can be fixed.