The seller has already said he isn't sending the item, but he won't refund my money.

[B6691]

I'm pretty sure he tried to scam me. How should I go about getting my money back? I've already tried to "dispute with seller", and he said he is not sending the item. 

[DPCreations]

File a dispute for item not received and then escalate to a claim.

Of course, if you sent the money as friends/family/gift then you've lost the money due to poor buyer judgement.

[B6691]

I used the "Pay for goods or services" option. 

[DPCreations]

Then just file a dispute for item not received.  Without tracking to show delivered you would automatically win. After filing, make sure you escalate to a claim as soon as possible; without escalation the dispute will just die without resolution.

[B6691]

This is the message under the options of the dispute : "Please allow some time for your order to arrive. If you don't receive your order by Tuesday, February 7, 2017, you may escalate to PayPal."

So I'm guessing I have to wait till "February 7th" before I can escalate?

[DPCreations]

yes