Paypal hacked, money stolen, not sure how to proceed

So long story short someone used my paypal to buy a product online. I received the confirmation of the purchase on my email. The product is going to be delivered to a random address in London (to my name although obviously I didn't order it). The hacker wanted to use my account to buy more stuff but I managed to cancel my card before they were able to do so.
I don't see how someone smart enough to hack paypal would be dumb enough to order the product to be delivered at their doorstep so I'm leaning towards thinking that it's just a randomly picked address and an innocent person could easily live there. I don't understand though why someone would send crap bought online to someone else's address.
Maybe it was just a "probe" purchase to get more access to my card or whatever?
I'm not sure what to think of this and whether to go report it to a police station or just move on. Has anybody had any experience with this?
Thanks

Report to the police, and check out the address. Put your foot in the door and question the person about it. If they try to shut it, you know that it's the fraudster. Then, go in there and get your stuff back and drag his arse to the police station.

Contact the people they've bought from.