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Did the merchants have installed a GPS or something on the items their selling, everytime i pick pocket one even tought im in stealth and nobody is seeing me the seller come back at me asking for item or turn hostile on the spot.
Step 1: Make sure a party member is talking to them while pickpocketing.
Step 2: After pickpocketing, close the conversataion and then run away. They won't have time to catch and question you. Then they'll forget they were pickpocketed after about 30 seconds.
Leave a companion a bit far away from the seller and, before closing conversation, transfer the items robbed to that companion. Let the seller inspect your pockets while you yell: "But i have nothing to hide!" Seller will be satisfied and will leave you alone, forgetting what happened and returning to the initial non hostile mode.

PS: only yell to the seller if you are playing with a friend and he or she hears you. Otherwise, your family/neighbours will think you are crazy.
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Kakarot96: Leave a companion a bit far away from the seller and, before closing conversation, transfer the items robbed to that companion. Let the seller inspect your pockets while you yell: "But i have nothing to hide!" Seller will be satisfied and will leave you alone, forgetting what happened and returning to the initial non hostile mode.

PS: only yell to the seller if you are playing with a friend and he or she hears you. Otherwise, your family/neighbours will think you are crazy.
lol

This is great advice, I never even knew you could switch characters while in a convo. I always just ran like hell after and it didn't always work ;)

If you were able to do this (convo switch) in the first game as well (EE), I didn't know that either. Good god that would have made the constantly walking around vendors so much easier - and many less reloads.