What happens to the merchandise???

[sntent1]

If merchandise is damaged, seller won't accept returns, "eBay buyer protection" is enacted, what happens to the merchandise??

[stainlessenginecovers]

If merch is damaged, then Seller HAS NO CHOICE but to either allow you to return it (and pay for it's return via an automated shipping label) or Seller can simply Refund....but! ....

......you HAVE to open a 'return' for the reason of 'Not As Described'- since it was damaged and doesn't match what you were to receive. 

Then, again- the seller will either refund you or have you return it. So, what happens to the item depends on the Seller. If they just want to 'refund' you and not pay for it's return, then you toss it, fix it, give it away...whatever. 

[simba6]

No returns does not apply to damaged in shipping or items not as described.  The seller is given a choice, pay it's return and refund in full when they receive it back.  Or just refund in full and let the buyer keep it for free.  It's often not worth them spending more to get back broken items.

If the seller does neither, you can ask ebay to decide after a few days.  They will choose the latter.