Bought a couple of sets from the TRU ebay store a few weeks ago. One of them came in with damaged box. Normally in such case with a TRU.com purchase I'll just return to the local store, but I'm not sure whether local store can handle return for purchase from their ebay store. Anyone has experience? How do they do refund since I paid via paypal? Thanks! 

Yes, you can return Toys R Us EBay purchases in-store.  I've never had an issue with this.

thanks for the confirmation. so the store can handle refund for paypal purchase? or they just issue store credit?

I did it once long time ago and what they did was a store credit, because they don't have the paypal return capability, that's what the manager said like 9 months ago.

thanks for the confirmation. so the store can handle refund for paypal purchase? or they just issue store credit?

I got cash back when I did this.