Someone explain full out what amazon refund actually is.

It's very simple actually it happens like this(i'm putting this in a simple way, it is a bit more complex):
1. You buy an item that has been either fulfilled and/or sold by Amazon
2. You wait for the item to be sent(in some cases you don't) and you call/chat with a amazon representative claiming that the package you received was empty and/or broken when you received it(You must tell a believable story)
3. They instantly refund your payment/gift card amount you spent on it(as long as you convince them)

Works the same way for replacements.

Hope i answered your question!

Did you receive the package already?

If so, the most common method is telling them that when you received the package the box was empty and the item was nowhere to be found(make it a bit more believable then that, but that should be your key point). As long as the product was "Fulfilled and/or Sold by Amazon" .

You buy a product.
Get it.
Contact amazon and tell them you didnt get your product.
They will send you a other one or your money

If Social Engineering isn't your forte, i suggest using a vouched Amazon refunder from HERE. It's well worth the 5% they charge.

Good luck man!

It works as when the item is "Sold/fulfilled by Amazon" you don't have to sign for the package. That's why the Amazon refunders have it as a requirement to refund/replace an item for you.