ipodsaves inhandbagssales.com Item sent looked used and did not work. Contact informationis a bogus address shanghi, Internet

I used Google to locate a 5th generation Ipod nano and came across ipodsaves.com.  I purchased a blue nano on 4/17/2011 online.  I checked back daily to the website to check the status of my purchase, hoping it would be shipped soon.  On 4/21 I waas denied access using my password and email address, stating that it did not exist on their website.  This was a major red flag for me.  I immediately tried to contact their site listed, Sales@ipodnanomp3us.info.  This mail was returned to me because of a mail delivery failure, an unknown address.  Another red flag.  I checked my credit card and saw that the money was taken on 4/18 to a company www.inhandbagssales.com.  I went on that website but it did not list ipods or a contact info.  On 4/23 I received an envelope from Global express mail which contained a blue 5th generation nano ipod.  The case was wrapped in bubble wrap, there was no other paperwork inside containing a shipping order or company contact, and the item is damaged and does not work.  The shipping label is all in Chineese and I have no idea how to return this item and get my $109.00 back! It looks used and I am very disappointed.  I enjoy shopping on the web and have never had this happen.