A buyer bought a skort from me. I have provided the measurement prior purchase and she made her decision to purchase the skort. Now she wants a refund because the skort doesn't fit her. I declined the return request on ebay after spoken to ebay agent (which I have provided accurate description) and now she opened a dispute on Paypal to get her money back. Most likely paypal will give her refund (from the paypal's message) and she keeps the skort.
Answer the paypal case questions and say you will refund but first want the item back. That is probably the best outcome you can get. Better than losing money and item
Annoying that you have to deal with two different resolutions though.
