I first started as a buyer on TopHatter. It seemed after I had won a few great items, all I was shown in the auctions was complete junk. Most of it came from China in a poly bag and arrived damaged. I did get most of it refunded, but I had a problem with a particular seller that sent me the wrong item 4 different times. I reported this with Top Hatter support and they kept asking me for more documentation. I sent pictures and the order number so they had everything they needed. They kept asking for additional information until the 30 day window for refunds ran out.
I looked up the company information, and it seems that they have an office in China and are not what they claim to be at all. They are promoting cheap products and seem to favor Chinese suppliers. It also seems, though I can't prove it, that they let you win a few auctions for quality products and after that they only show complete junk on the auctions.
I decided to try selling some of my products on the site, and they took almost all of the sales in fees. There is absolutely no way to make money on this site as a seller. On almost $200 in sales they charged me fees of $160 leaving me with less than $40 in net revenue. I might as well give my products away.
I am so disgusted with this company and hope the SEC takes a look at their business practices. If there is any class action against them I will certainly participate.