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@ibeyondwu wrote:
What s the process of escalate? Why the buyer can keep the both money and watch, shoulnt ebay at least ask the buyer return the watch for the refund?

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The dispute process is very heavily weighted in the buyer's favour, and if you as a seller escalate they invariably find in favour of the buyer and you'll lose everything.

If however you offer to give a full refund after the return of the watch, then at least you only lose the postage part.