thought on eBay?

I've bought and sold things on eBay, but never $$$ audio equipment. I have had good experiences with Audiogon and AudioMart but I'm cautious about eBay, if only because many sellers often have little history with audio gear. I'm looking at an item that will likely end up in the $4k range from a seller who doesn't accept returns and has almost no record of selling audio equipment but does have an extensive and excellent record of buying and selling other things. 

1) In general, would you guys spend many thousands of dollars on eBay if there are no red flags--or do you say "never eBay" for big purchases?

2) Can anyone explain the reality of eBay's policies? I can see the "money back guarantee" if the item arrives "broken, damaged, or faulty." But I've also heard plenty of horror stories out here about companies that offer similar guarantees in theory but are awful to deal with in reality. I'll add that sometimes "faulty" for stereo gear can be a vast grey area.

So, bottom line: would you make a big audio purchase through eBay, especially from a seller with little visible audio experience?
I used to do a lot of transactions on Ebay. Very few problems and when they happened buyers protection worked 100%; so no complaints there.

Nevertheless I have decided not to do business anymore since they now do not allow negative feedback for non paying buyers. There's no way to protect yourself form people just playing with bids and alas there's  many. This is so bad for me I decided to switch to other marketplaces.
eBay is a business...crazy concept eh? Those charges are paying for software, staff, worldwide exposure, some profit (obviously), instant customer service & most importantly full insurance as a buyer & seller. I've had very few issues throughout my time with eBay but on those remote occasions they have stepped in & sorted it. 
Also they do have regular reduced seller's fee offers of 80%.
Just offering a balanced view.
I have been both a buyer and seller on eBay.  I have not had a bad experience either way.  I have tried selling higher end audio on eBay, Audiogon, AudioMart, Craigslist, & Facebook Market place.  Unfortunately,  (I list on at least 3 at the same time), eBay sells the item faster.  I say unfortunately, because I wind up with less money for the item due to their fees and charges; however their shipping costs are substantially lower than you can get on your own.  That didn't make as big a difference as it does now that shipping costs are extremely high.
Does the seller have the original cartons? If not, I've gone so far as to construct over size boxes and sent to the seller (including the tape for the outside of carton!). You said that the seller has excellent feedback. You should be good to go with PayPal. The worst case scenario is you get stuck paying the return postage.   
I've been a seller on ebay since 2004...sold plenty of audio gear, as well as bought...last audio component purchased was several years ago, my marantz pm14s1. It was sold by a reputable audio dealer based in New England and was a customer return. It arrived in flawless brand new condition. Yes, there are some occasional jerks that buy my stuff and cause me a headache, but over all I've had great success and 100 % positive feedback.