#1 never refund a buyer via paypal using the gift method, because paypal will see it as you sending them the money as a gift, and not as a transaction, so the dispute could still be open, and he'll demand even more money from you. You have to be careful man.
Also, when selling products check feedback from sellers, ask questions, ask about refunds, exchanges, warranties, look up the items you want to sell on the auction site you sell, and make sure their profitable, check the feedback of those auction sellers to see what buyers have to say about the product you want to sell, so you won't make the same mistakes. You have to stay on the safe side. Good Luck!
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