Sold a sealed item, buyer says it's defective.sealed item defectivr

[yazzi18]

Hiya,

I sold an item that was posted on Monday. It was still sealed in its packaging. Recieved a return case through ebay today requesting I refund them (item plus original postage) and pay for the return postage as well, as the buyer claims that the item is defective.

I wouldn't have a problem with refunding, but the thing is that it already cost me more to post than the buyer paid. And the return postage will cost more than half of the sale price of the item itself. So, for an item that sold for 25 + 10 postage (which cost me 15), plus another 15 to return it, I'm going to end up out of pocket for pretty much the same amount the item sold for.

Part of me just wants to refund them and tell them to keep it the thing, but part of me thinks they're aware of that and wants me to refund so they can keep the item, and there's nothing wrong with the item....

The other thing is that I had listed the item as "No returns accepted", and this still shows on the listing, but eBay platered their "Money Back Guarantee!" all over it as well. Is that not a contradiction? Very confusing.

Not sure what to do?