It sounds like there might be a way for you to diplomatically walk away from this deal and get your funds back.
My friendly advice would be for you to do just that.
If in the near future he's able to show that he can deliver good quality in a timely manner; then you can always re-discuss the transaction. He'll look good in the process, and you'll end up getting what you want with minimal risks. Win-win.
But until then, getting out of this might be the best thing to do.
Remember, this kind of stuff is never personal. Someone has something to offer, at a cost - you pay the cost - they ship the something. It's as simple as that. If that last part isn't fulfilled; un-pay and walk away.
I hope you'll be able to resolve this in a friendly way.