@belindabargainhunter wrote:

 I would say the op offered the refund of puchase price but not the postage and thats is why the buyer is not agreeing 


That is how I interpreted "I said I would refund the price of the item and she could keep it" from the OP. If the offer is inclusive of original postage, I'm not really sure why the buyer would insist on returning at the seller's expense...but they effectively can't insist on that if a full refund including postage is issued.