Undeliverable as Addressed - best way to handle

With increasing sales, Undeliverable as Addressed returns become more frequent. When you start to have multiple each week, you start thinking about the unnecessary shipping costs your business is eating, due to people not addressing their orders properly.

I found this page on Amazon, with this guidance:

"What do I do if the item is undeliverable?

You may refund the order and deduct the shipping costs from the amount refunded to the buyer. However, you may not charge restocking fees. If the buyer wants the product shipped to a different address, they must submit a new order."

However, when you go to issue a refund for an Undeliverable as Addressed order, there is no option to deduct the cost of the shipping label on the refunds page.

Is the above guidance outdated? Can a Mod jump in and say whether it is still possible to deduct the cost of the shipping label, in the case of Undeliverable as Addressed Orders?

What is the best way to address them, if we'd rather not absorb the cost of shipping orders to people who address their orders incorrectly, or vacate the premises? (We buy most of our postage through Amazon.)