I received a broken item. Do I file a claim through eBay or USPS?

[pric.eri]

I received an electronic item that does not work as described.  There appears to be no physical damage to the item, but an electrical connection inside of it is inconsistent, so the item only works half the time.  The item was listed with "no refunds", but to my knowledge, that implies that the item should arrive and function as described. 

Seller says the item worked when shipped, so no refund.  Seller says I should submit a claim with USPS to get a $100 check from them (The item cost $160).  Is this my correct option as the buyer, or should I escalate through eBay?

[wooden_flower · Accepted solution]

No, do not file a usps claim - that is the seller's responsibility.  His no returns policy does not apply to an item that does not arrive as listed.

Go to your purchase history - select return this item.  Under reason for return, select does not match the description, and follow the prompts.
The seller has 3 business days to send you a return label or a refund.  If he doesn't, or says he can not send a label, go to your case and click 'ask us to step in'.

The seller can decide if he wants to file a claim.  If there was no damage to the box or unit, it probably was just not packed well enough.  If wants to file a claim, he should ask you to print the return label, then issue your refund now but ask you to hold the item in case the PO wants to inspect it.

If he asks you to hold but does not issue the refund, tell him no, and ship before the deadline.