unpaid item return question

[ni.us96]

I purchased a cheap tool from a seller in China.  It was faulty and I requested a return.  Funds were returned to my PayPal quickly, but this item is now in my "unpaid items" list.  I'm wondering if they are waiting for me to return the product before it comes off that list?  It will cost more to ship than the cost of the item, and I'm not sure how to ship it anyway, since the seller's address is like: 敏巧 钟
童店三区8栋1单元1楼01号...   Do I need to reverse the return somehow?  I figure that having anything on a list called "unpaid" is not a good thing.  Any advice is appreciated.  Thanks.