American Loco Sent wrong merchandise, refused to correct issue Eagleville Tennessee

I placed order online.  I clicked the appropriate color and size of Iphone and then processed order.  For some reason the order reverted to the default color and phone size when the order processed which was not what I wanted. I wrote customer service about the error when I discovered it.  They said the order would cost more for me to ship it back than the cost of the product. My cost of the product was $29.95, plus shipping at $4.95 ($34.90)

Basically their response is that it would cost me more than the cost of the product to ship it back along with a few other poor excuses for their customer service.  (Not exactly sure why it costs them only $4.95 to ship but it would cost me more than the product is worth.)

Here is a copy of their customer service response:

Hi,
We sincerely apologize for the inconvenience this issue has caused you.

Please note that sending the product back will cost you much more than the product itself. You will have to send it back to the warehouse, pay for the shipping and taxes and we will refund you only for the product itself (we won't refund you for the $4.95 shipping because we already shipped the product to your address). Furthermore, we need to wait for the returned item to reach our warehouse, check if there are no damage then we can issue you a refund. Lastly, we will not be responsible for any loss or damage incurred during in transit of the package.

Thank you for your understanding.

Thank You!
American Loco's Support Team

Bottom line, is something went wrong in order system and they are not willing to correct the issue.  Also, note, I have not received product yet either.  Placed order on 11/26.  Today is 12/11.