Any "not received" refund request applies to the actual package, not the contents. You received the package per tracking, that's why it was denied (I know, somewhat confusing).
Now go back to your Purchase History and open a RETURN request using "not as described" as the reason - meaning it was supposed to be a watch and it's not there basically. Upload photos of the empty box in the case.
The seller will be required to either upload a prepaid return label or PayPal you the $ in advance to purchase a return label. Assuming they won't want an empty box returned to them, they can refund in full without a return.
If they don't respond in the dispute, on the 4th day you will see the option to "ask eBay to step in".
Watch the timelines closely and do not let the case expire without action.
Read:
These are 2 different cases and they are handled differently; you can only open 2 cases on the same item in this order -
1 - refund request for "not received" - I assume that's what you opened first, it was denied because you received it (the package albeit empty) - eBay looks at tracking only.
2 - Return request for receiving an item "not as described" - an empty watch box, not a watch.
You should have an active Return button or option in your Purchase History for that item.
