I bet the seller is kicking herself that she agreed to send it to Australia. I know the seller is completely at fault, but not only did she lose her bag, which she could have kept for herself or used for parts, and the sales price, but also the shipping cost, which came out of her own pocket.I have mixed feelings on this.
There have been many discussion on just this type of scenario on the ebay forum, cases where "authentications" deemed an authentic item as fake and buyers were told to submit documentation and an affidavit of destruction, after which they got their refund. Scamming buyer kept authentic item and got it free.
There have also been cases where fakes were returned to sellers only to be relisted and resold. That's not a good thing either.
In Two.time.bags's case, I think it had more to do with her location than with the fact that the return would cost nearly as much as the refund she'd get.
As I understand, in Australia, it's illegal to send a fake through the mail, even if you're returning it to a seller who ripped you off. (In the US, it's not illegal to own or purchase a fake, nor is it illegal to return a counterfeit item.)
Depending on the country, the victim's only recourse is as Two.time.bags had.
By the way, we didn't mention the seller's name when we discussed this bag. Could someone please post it so it will show up in a search.