I have been trading on ebay for many years and have earned "PowerSeller" status.
I trade honestly and when mitakes occur - I ALWAYS immediately offer a FULL REFUND to the buyer of the goods (or send an exact replacement).
Recently I sold a mobile phone to a customer - who notified me (after receiving the item) that the item was listed incorrectly (I said it wasn't 'locked' to any network - but it was (I didn't know it was). I immediately offered and supplied the buyer a FULL refund and transferred the money into his account THAT DAY. One full month went by without the phone being returned. After numerous emails (culminating in a threat to go to the police) I FINALLY received the phone back - but with a DIFFERENT battery than that sent with the phone. The buyer had obviously kept the good battery and sent his bad one back (which didn't fit the phone I had sold him). I now have a mobile phone that is useless.
You hear stories all the time in the media about peopel getting 'ripped off' on ebay by dodgy sellers.
I works both ways! Honest sellers get ripped off too! AND it is starting to happen all too often.
Sellers beware - there are a lot of bastards out there!