Grrrr

Gday all,

                  I sold an item over a mth ago,i recieved a message from the buyer  on the 29/3 that they didnt recieve their item and requested a tracking number to which i provided. Yesterday they opened a dispute on the grounds of not recieving their item. After looking at their tracking the item did reach their destination, but after 12 days they did NOT pick the item up from their  post facility, and its on its way back to me. Not recieved yet. My question is how am i responsible for the item considering the buyer didnt pick up???? They are demanding a refund,??? I dont believe i owe them one,?? What to do,?????