Well I just got off the phone with Sarah. She was extremely nice & I could tell she was as horrified as I was. She offered to sell my bag with no fees if I wanted to still sell it. I think I'm going to take her up on it. As for letting them sell my other bags, I told her I had to think about it. Overall I'm very please with Sarah's response, we missed each other a few times, but she kept trying.
I think if she called you to follow up without you starting the calls, then they are at least serious about apologizing.
If it's the bag that they cut the tags off of....I'd say yes....if you think the fees would compensate the value lost by their mistake.
I'd be leary about selling anything else also. Maybe give it some time....see how this turns out.