Lisa asks, "Is it even legal to sell merchandise that one does not have possession of?" The answer is "Yes, as long as one can deliver the goods one sells." Taking money and not producing merchandise is fraud -- in the case of eBay transactions, mail fraud. So if this bozo has actually stiffed any of you good folks, your local P.O. has a standard complaint form you can fill out and file with the Office of the Postal Service Inspector General. The investigators there have real badges and guns and arrest powers, and they don't play around. Let's see him try to bluster and bully his way out of that.