I recently received an A-to-Z claim for an order where the customer returned the item and the package was lost by UPS before it was delivered back. The buyer filed an A-to-Z claim and Amazon automatically granted the claim for the buyer and debited my account. After appealing and explaining that "Amazon is the shipper of record, and I am unable to file an insurance claim for the missing package. Amazon should take responsibility for the lost item because it was not returned and it was an Amazon generated shipping label with Amazon being the sole entity responsible for communication with UPS regarding a lost package." They denied my appeal and stated "Thank you for taking the time to provide us with more information regarding your claim on order xxxxx. Upon further review, we have decided to uphold our original decision."

Is this standard policy? If so, it seems incredibly unfair to me as a seller.