Yallstore Attempted fraud, Bad Customer Service New Jersey

We ordered a beginner violin from this store on E-bay.  No problem with inital transaction and receiving tracking number for shipping.  The item was to be delivered within a 5 day time.  We kept checking tracking information, and the item never seemed to leave New Jersey.

After 7 days, we contacted the company via email and told them we had still not received the violin.  They responded back with the same tracking number we already had.  We tried explaining that the tracking number showed the item still in New Jersey.  They told us to check with neighbors to see if it was delivered to them, or check with our Post Office.  Each response basically edged around the fact we could tell the item never shipped out of their state.

Once we responded to tell them the item was not at the Post Office, they immediately decided it was "lost" and offered us a 30% refund of our money.  Needless to say, this was not acceptable and we told them that.  Again they responded telling us they were sorry that it was a loss for us - but it was also a loss to them, and they offered a 50% refund of our money but ONLY if we closed the case we had begun with E-bay. 

Of course, we also refused this offer and told them we would continue the case with E-bay and we expected our full refund.  We also mentioned that the Post Office now insures for up to $100 and there would actually be no loss to them.  Once this was made clear - they finally refunded the purchase.

I feel they were only trying to obtain extra funds not only from us "the buyers" but also from the Post Office to claim insurance on a package that was never lost.