No product and no refund after 2 months!

I returned a product for R800 2 months ago. I returned it in perfect order. Takealot collected it and I got my sms to say it had been collected. Takealot have still not refunded me my money and say that they cannot locate the product at the warehouse. They say they can only refund me when they locate the product. This is theft! They have my money and I don't have the product. I am absolutely disgusted at Takealot. I give them so much business. I will not use them again. They will be sorry when Amazon comes to SA if they don't up their service levels.