Drop Ship Design Stalling Refund for Item, weeks after order was canceled Bainbridge Ripoff Island Washington

I drop shipped a few items for Drop Ship Design. The latest item was a Nitendo Wii, which was ordered on July 21st. About 10 days later, I received an email stating that it was the 3rd and final notice to verify my billing address for shipment. They had the money for the item since the 21st via Paypal and my home address (billing address) had been verified up until that point twice. It was also the first email I had received since I had made the order. By this time, I had already been getting emails from the eBay customer wondering where their item was. They said they no longer wanted the item and wanted their money back since it was taking so long. I contacted the drop ship company and canceled the order, which was before the Drop Ship Design had even shipped it. The next day, I got an email asking if I was canceling the order or my account, and another 20 minutes after they sent that, there was an email sent stating the item had been shipped. In the message I sent to the drop ship company, I stated plainly that I was canceling the order and wanted a full refund immediately since they had delayed shipment for so long. I received another email stating it was my own fault for the shipment delay and that they wouldn't issue a refund until tracking showed the item was enroute back to the warehouse. When I got tracking proof the item was enroute back, they said that they wouldn't issue a refund until the item was back at their warehouse. Now the item is back at the warehouse, I have been told I need to wait longer for it to be processed.

The way they conduct business seems like it is an illegal operation, just stringing people around until they make enough money.

Leah
Oakland, Illinois
U.S.A.