I've had the misfortune of receiving two damaged engines. Both packaged with newspaper. Both shipped in a cardboard box that was too large for the engine. In both cases, not only was there insufficient packing material used, but the oversize boxes allowed the engines to tumble during shipping. Both times I was informed that the claims process has to be initiated by the seller/shipper. I was also informed that any compensation would be paid to the seller/shipper. It's a sh_tty process for sure.
The first engine had wrecked cases and the seller wasn't interested in taking responsibility for the damage, nor was he interested in refunding my money. After being presistent, he finally sent me $20...gee, thanks. My saving grace was the fact that he had shipped it from a UPS Store. Apparently when a UPS Store is used, they become the shipper and any money paid goes directly to them. This was a huge help because the manager at the UPS Store was very prompt in executing the claims paperwork and also in sending me a refund. An inspection of the packing material was mentioned, but never conducted. I never even had to send pictures of the damage.
The second engine I received was an eBay purchase and I filed a claim through PayPal. I only asked for a partial credit so I could repair the damage. PayPal told the seller to refund part of my money, but the seller never did. The seller also stopped answering emails. When I informed PayPal that a credit was never received, they told me to "escalate the claim". After pushing to receive the credit for a second time, PayPal fired back that I would now be required to return the engine. I informed PayPal that I had already paid to have the cases TIG welded, purchased gaskets, reassembled the engine, and installed it in the bike. PayPal got heavy-handed, told me that I was required to send the engine back and upon receipt of the engine the seller would issue a refund. PayPal even sent me a prepaid shipping label and a cardboard box. Seriously? They wanted me to send the engine back in a cardboard box, after sinking time and money into repairing it, to a seller that was now ignoring my emails and failed to issue a credit. I threatened to take a dump in the box and ship that at PayPal's expense. They recommended that I not ship biohazardous waste through the mail. I ended up keeping the engine and eating the cost of the repair. The biggest issue was the claims process took so long that I wasn't able to leave negative feedback warning other people about this seller's sh_tty shipping and non-existent communication.
Good luck. I know it's a frustrating process.