Amazon's policy on returns

[Nisei]

I often read posts from people who've received a damaged/faulty item and get a replacement from Amazon.com while they can keep the faulty item.
Today I received a $20 X-Files book from Amazon.com, shipped to the Netherlands.
Packing was done very sloppy (they dropped it in a box without bubble wrapping it and it could move around inside the box) so it was 99% certain it would arrive damaged. Which, of course, it did. I've contacted them through chat and they insist I'm sending it back, even though I told them return shipping would be $32 (that's $12 more than the value of the book!!!).
How can they be so stupid? And why do I hear lots of people can keep the items even though return shipping for a Blu-ray is far less than the value of the item? This is the second time I'm receiving a damaged item from them and both times they insist I send it back even though in both cases the price for return shipping was higher than the price of the actual item.