Thank you all for your advice and help. Very much appreciated!!
I guess perhaps I should have made myself clearer in my title (but sorry, I've never started a Paypal dispute/claim before). I was wondering if I should start a Paypal dispute (not yet escalated to a claim yet), just so that Paypal is put on alert and can put a hold on the money that I've paid. And also that there is a clear record of all that transpires between myself and the seller. If I were to receive the exchange item, then I can tell Paypal to close the dispute and the funds will be released. But if I don't receive it, then I can escalate to a Paypal claim and hopefully get the money back.
Loganz, I understand what you're saying, from a business owner's point of view, esp one with an actual physical store. But I think what the others are trying to point out is that in ebay, it's so much easier for crooks to do what they do, and they can just disappear with the money and item. Moreover, my seller has less than 10 feedback, so it's not like I can take comfort in his good feedback record.
Well, the seller is supposed to revert to me early next week, hopefully all will be well. I will keep everyone posted.
Just 1 more question, if the seller refunds you, does it mean that the funds are cleared, ie. I definitely do have the money back? cos I think I've read somewhere that a refund can be reversed?