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Re: Argh, need some ebay advice!
Firstly - DO NOT refund without getting the watch back!
Myself, I'd tell him that the item, as all items on ebay are, was sold as seen. If he wants to push the issue let him open a paypal dispute where he will have to return the item via a trackable means (so you have proof the item is returned) before any refund is offered, and even then its largely at your discretion.
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