Guys, a little update on my issue here.
I went to see the seller this afternoon. I told him I am not comfortable with the Serial Number. First he tried to show me a watch he just sold this morning with a Randomise Serial Number, he took a picture of the warranty card for me to see.

I told him there is only 7 digits of alpha-numerical on my watch's serial number, the 2012 serial number consists of 8 digits of alpha-numerical number. He told me he did not know that???
But later he agrees for an exchange. He will get a new one with randomized serial number as I requested. He will exchange the watch but my bracelet will have to stay with me, since he already altered the length. (I still haven't removed any of the protective stickers on the watch). I agreed. He told me if not tomorrow, he will go traveling at the end of the month and definitely get one for me. Mean time I can keep this watch but he advised not to wear them. I agreed.
Then I stayed on for about 1 hour and talk about general things, from watches to friends that we both know.
What do you guys think? Will it be a fair deal.