Well, an update to that long ago case. I won in court and got my deposit back no help from Paypal.
Now....I went ahead and resumed using Ebay and Paypal to sell tools and material from my now closed watchmaking business. I sold a $2000 lathe to a guy in Japan using the new international seller hub program. I was told I was only responsible to get it to Kentucky and they assumed responsibility for the rest. Not quite true.
The buyer simply declared the 100 year old lathe "not as described" without needing to provide any evidence of this. He said in the messages to me he simply changed his mind and needed the money for a different one he found. In fact it was described accurately and pics were taken so show any minor issues. Everything shown and described was included.
Ebay then tells me, when a buyer declares "not as described" nothing I said or shown would make a difference. I asked if I had said it was a "complete piece of junk do not buy", he would still win a "not as described" case.
Anyway to keep this 8 month ordeal short, Ebay ruled in his favor then reversed then reversed again, I was then told I was responsible to pay the $800 shipping (he wanted it sent Fedex) to get it back and refund the buyers $800 he spent to get it to him. They demanded I supply a label through message board. and do it in 3 days or loose lathe and the money. I found the better rates were through Japan Post not the Fedex he used. However, I couldn't buy a label unless I opened an account and they needed a domestic address. A sympathetic high value agent allowed me to send the money for Japan Post by Paypal rather than provide a Fedex label.
The buyer supposedly sent the lathe and it gets lost.
Ebay eventually rules in my favor BECAUSE he bought he label! If I had provided the label I would have lost the lathe and the money he paid for the label the shipping, everything.
Fast forward 2 months, the buyer does a chargeback on his credit card and Paypal. Ebay says they have seller protection but they have no say in what Paypal does. I closed my paypal account, changed my credit card number, closed my bank account. They said they can simply sue.
Get this... the box arrived Sat!. I have not opened it to see what is actually inside (I have 2 stories of fake returns with empty box or books) it weighs 10lbs less than when I sent it. The Post Office says I can refuse delivery if unopened and it will return to him. I thought it might help the outcome of the case if they saw it was returning to him. Problem is eBay advised me to not do that as I may lose the case and have to refund the buyer $2800 and not have the lathe (if it is inside and complete).
I actually collected about $1650 of the $2000 from the sale, the rest was ebay fees. I asked that if I lose the case with Paypal would ebay refund my fees and they said no, the case was closed too long ago. So, I stand to lose $2000 that he paid ebay, a $2000 lathe, and about $1400 in shipping both ways if I refuse it, and send it back. Remember I collected $1650 for a net loss of about $3750.
If I don't refuse it and open it I stand to lose the $2000 he spent plus the $1400 in shipping both ways but might have the lathe and $1650 for a net loss of $1750. (Assuming the lathe is complete and intact.). I'd feel bad if the buyer suffers loss, but he was unreasonable and willing to impose huge losses on me for no just cause.
Not sure how this will end.
In short do not sell on ebay anything where the shipping (both ways) is more than you are willing to lose. AND know that whoever buys the label is responsible for return shipping loss. Also know that winning a case on Ebay does not end the matter if the buyer used a credit card or Paypal.