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Counterfeit DS cartridge received - what to do?

I've bought a game off E-Bay, for the Nintendo DS, for what I thought was a reasonable price. It wasn't a full tenner cheaper than anywhere else, so I thought I was getting a decent deal. It wasn't till I looked at the buyer's feedback later, I noticed one FB saying he'd sold a counterfeit item. Uh-oh.

A week or so later, the item arrives. And it's fake. It's a good fake, but it's fake. The clues?

1: A faded, photocopied looking cover.
2: A manual with a blank back cover, and chunks of a review pasted in.
3: A cartridge with an off-centre sticker, what appears to be damaged plastic at the bottom of the cartridge.
4: The cartridge apparently being UK, but the box and manual being US.
5: The whole thing just being shrink wrapped, not factory sealed.

I've contacted the seller and am awaiting a reply. Cheekily though, he claims on his listing that he will only refund item costs, not postage costs. Why should I be out of pocket for him selling a pirate copy?

I'll see what he says, but I'm also tempted to inform E-Bay that he's selling counterfeit products. And to leave negative feedback saying this. The only think bugging me is the possibility of retaliation, as I'm also selling a few things on E-Bay. I suppose I could wait till my listings finish. Any thoughts?

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