This is the constant risk/inconvenience one encounters on e-Bay.
For that last listing, fraud is very evident. If you go in the seller review, you will see a mostly positive reviews. However, if you dig deeper, you will see a ton of transactions of very low price item (like a small stone for $1.99 - really!), each giving a one sentence review. The pattern repeats for low price identical items within that short time frame. So this set up of a fake store with a set of fake buyers is how they make the seller appears as a reliable seller. Most buyer will never spend the time to review it, and fall into the trap.
Now, when it comes to how they profit from the fraud. There are a number of red flags in the listing:
"We Accept Paypal ONLY! Payment Must Be Blanced in 7 days After Auction Ended."
"The images shown are not the actual item and are for your reference only."
"If you have not received your shipment within 30 days from payment, please contact us. We will track the shipment and get back to you as soon as possible with a reply. Our goal is customer satisfaction!"
Typically, funds are withdrawn from your account and placed into the seller PayPal account as you make the payment. It often takes a few days before seller can transfer the funds they received from their PayPal account into their own bank account. Given the goods comes from China, even if they actually ship you something, the payment would be settled well before you receive your merchandise. If you follow their 30 day suggestion, the money is long gone from the PayPal system by the time you file a claim. Assuming they close their bank account, or hack into someone else's, so they can take their money and run. In that case, I presume PayPal would end up getting hit with the fraud, and the buyer will eventually get the money back.
If you look at the reviews, you will see some -ve reviews of people who actually got scammed. They said the seller never respond to messages, send out fake tracking number, and the merchandise never arrived.
So buyers beware for goods that are too good to be true, do your research before hitting the buy button.