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Having the damage tape on the box doesn't necessarily mean it was originally shipped in that condition. I've seen that happen numerous times when the package was damaged by the postal service in transit, and they'd put the tape on there at the next checkpoint where it arrived damaged. It's amazing how thoroughly the USPS / UPS can pulverize boxes.
My advice is to contact the post office and see what they can do for you, since they're very likely the ones who demolished it. If it's not insured, I don't know that they can do a lot to help. In that case, get in touch with the seller and try to work it out before you go to Paypal. See if the seller is willing to work things out amicably. I think of doing credit card chargebacks and Paypal claims as a last resort if I'm not able to work things out directly with the other person.
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