Receptionist (how does this scam work)?

The scammer intends to either flash the account (using fraudulent transactions to make it appear for a brief time as if you have had money added to your account) or he will transfer money from someone's hacked or phished account to yours (so yes, stolen money.)

So it's basically a standard mule scam, only instead of having you send cash, he is having you send merchandise instead.

We do not bait here or encourage it.

What should I tell the scammer? How should I bait him?

Just pretend you fell off the face of the earth. Do not contact him in any way. Do not respond to his emails, and above and beyond all else, do not tell him you know he is a scammer or that he is listed here !!

Baiting is not for beginners, you could get yourself in a compromised position you do not want to be in by trying it. Just let him think you died or something like that.