How eBay do it is beyond my pay grade. All I can say is they appear to be washing their hands of the people that are getting ripped of every day, by the thousands. Some are registered in China and some say they are in Australia. However, this is another "hands off" issue that eBay seem to be incapable of policing. There are all too many reports of local eBay sellers being found out to be fronts for overseas sellers.
To be honest the best option would be for eBay to have a banner warning that greets everybody every time they use eBay to warn them that unscrupulous sellers operate on eBay and buyers are advised to research a seller, thoroughly before buying. Something along the lines of the warning signs you see in shopping areas that warn of pickpockets and handbag thieves operating in the area. Pages and pages of FAQs, Ts&Cs and other stuff buried away is nowhere near effective enough. The only reason eBay don't warn people more effectively is the tarnish on the reputation of their product.
