Bought locally now seller wants item returned to China

Hi,

I recently bought a iphone listed as NEW on eBay for my FIL (he chose it and gave me the link and asked me to buy it for him). The items location was listed as NSW and it was shipped from NSW. When I received it the packaging looked fake so I looked up the serial number and I found it was a preowned refurbised phone from the USA. I contacted Apple and they advised that it was first activated in December 2014. I tried to open a INAD despute but eBays procedures just directed me to the seller. The seller have reluctantly agreed on the return but have asked for me to ship it to China. I have come back to the seller and told them to given me an address in Australia. I am pretty sure they are doing this to be difficult. Can anybody please advise the next step to ensure that I get my money back.

Thanks

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