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From the Help Center:
The book I sent was returned to me!
Please contact the requestor to let him/her know, and to confirm the proper address. If the book has already been declared lost in the mail at PBS, you should not re-send it unless she/he confirms that she/he still wants it.
The most common causes for packages to be returned to sender:
If the requestor still wants the book, and you decide to re-send it, it may be declared Lost in the Mail before it arrives.
Last Edited on: 11/20/07 8:16 PM ET - Total times edited: 1
it depends on whether the address was really wrong or if the PO messed up. Sometimes they do return things that are correctly addressed. If it is correct, take it back to the PO and they should resend it without you paying for additional postage.
otherwise, yes you are out the postage.
I would PM the person and let them know it was returned because it was unclaimed. If they want it, make them pay the postage to send it again. I don't think USPS will resend it without you paying postage again since it was unclaimed, not a problem with the delivery on their part.