Here's a quote from Catra's Wrath at Matty:
I can clear this one up quickly for you.
If a product is faulty, you can return it for a free replacement, no matter which shipping option you chose to recieve it by.
The replacement will be sent out once customer services recieve the faulty item back in the warehouse.
They will not cover the cost to send the item back, but, they will refund you your original shipping cost (the cost of shipping the figure to you the first time around).
Lost or missing items are a seperate issue. Replacements will only be given for lost or missing items if you used a trackable shipping option.
I hope that answers your questions.