Non-MLP Ebay Problem - Item Broken In Transit. Who Pays Return Shipping?

[Lancer]

I bought a camera on eBay.  Yes, stupid idea in the first place really but this model is discontinued and I really want one for when my own finally packs up (which can't be long now).  The seller stated that it was in 100% working condition and, while none of the photos actually showed it switched on, the camera looked all right on the outside so I decided to take a risk.  It cost me £24.99 including shipping.  £9.00 of that was for shipping but the actual stamp price was only 4.70 euros...but that's another issue all together.

The camera came from Portugal.  When it arrived, it was packed TERRIBLY.  One tiny bit of bubble wrap around the camera in a box that was far too big for it...so the camera was sliding from side to side banging against the edges of the box.  The bubble wrap itself was obviously reused and not one bubble still had any air in it.  It was just flat plastic.

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Unsurprisingly, the camera is faulty.  You can't see anything through the screen except a flickering pink out of focus fog and the photos it takes are also pink tinted and totally fuzzy.

The seller claims there was nothing wrong with the camera when it left him (well, of course he would...) but either way this is clearly his fault for not packing the item properly.  He says if I return it to him (at my own expense) he will give me a full refund.

I've got a horrible feeling this is what the eBay rules actually state?  But I wasn't sure as in this case it is obviously the seller's fault that the item got broken.  Do I have any leg to stand on?  Shipping to Portugal is going to be horrible, especially as I will have to use some kind of signed for/insured service because I don't trust this seller not to say it never got there at all.

Why did this have to happen at a time when I literally have no money?  I don't even have the pennies to scrape together to pay the shipping back to him!  It just seems I always get stuck with the short straw on eBay, whether as a buyer or a seller.

[Thunderwing]

I would expect the seller to pay for the return shipping. If the seller refuses to do so nicely, then go through eBay's "Item Not As Described". The seller will have the option to give you a refund with or without the return of the item, and the seller will have to pay the return postage. (Forewarned, you can only use this a limited number of times, so use this feature only if you must!). 

The seller is totally at fault. They have no proof the camera was working when it left, right? It definitely was not working on receipt, so it is not as described.

[gold.standard]

For a couple years my mother ran an ebay shop and specialized in selling antique ceramics/glassware etc.
Which, despite packing them as much as possible, a few broken ones happen, and every time, she would pay for the return shipping. Which, yeah it stinks sometimes, but something like covering returns is part of the business.
The seller should absolutely cover the return shipping. The seller not properly handling the item shouldn't cost you money!!