Well it sounds like it may be fully wound.
Here's something to try. With the back off, put a little pressure on the crown (clockwise), then use a toothpick or similar to move the click (3 on your photo) so that it's no longer engaging with the teeth of the wheel on top of the mainspring. Then let the crown slip anticlockwise through your fingers (applying a little pressure so it doesn't run too quickly).
This is letting the mainspring wind down.
When it's finished you should be able to wind the crown again until it's fully wound.
If it's still not running then there's definitely a problem that extends beyond the ability to wind the watch. Request a refund and return the watch, or decide to keep it.
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