Possible Risks of Selling Digital Goods on Ebay?

What are some of the possible risks that you face while selling your goods and what to do about them?

First, obviously the buyer refunding the product. Normally people doing this have brand new accounts and very fishy shipping addresses, so I had no problem dealing with them. You might still be scammed eventually, but it's not a big deal if your margins are big enough or the product is free of charge. (for you)
What's the best way to deal with them if they do buy? I've heard cancelling too many orders may get you suspended.

Second, a competitor/bad agent might report you, your account gets suspended and your funds go kaput.
Now I don't know for sure how this happens, but I've heard about it.
I'd deal with this with transferring the money from Paypal elsewhere as soon as possible.

Suspension will happen sooner or later, so I guess you will need stealth accounts if you're in the digital goods game.

Anyone have experience with this?

digital goods = suspended 100% when its counterfeit or cracked, chances of getting suspended is even higher

I agree, but I think it's possible to do this in the long term. Obviously you have to change accounts often and such.
Next tip: have an account with a history of selling legit products. At the very least you're not going to have so many holds.

account suspension(ebay/pp) / refunds

if these items are legit(they can be digital) you wont face any problem, if you are selling cracked or ilegal digital goods you will get suspended 100%.

I am selling steam wallet code on ebay. Is there any risk? I already sold 2 steam wallet code. The first payment was smooth I got it directly on my paypal and the second is good also because same person who bought my SWC. He already gave me 2 positive feedback. Any idea please? Because I am little bit scared to continue. BTW I made my account year 2012. I have 100% positive feedback as buyers. And now I want to start selling.

Well most likely you're going to get a warning from ebay if they get to you. At this point sell something else or start a new account. Second worst thing the guy might refund the items.

Digital Goods getting suspended, people reporting lost items that aren't really lost, people purchasing a product, then returning a fault product in exchange for a refund (always photograph some form of serial number), people saying Digital Goods aren't working after resale etc.

It depends.... What kind Digital items you sell.

beyond getting suspended. buyer also can easily open a case that the digital product is not working and you are obliged to give him a refund since you dont have a tracking number, ( Ebay Logic sucks )