I sold 2 Avon Vintage Coleman Lanterns to Shop Airlines America, Inc. on May 8. Both items were packaged by USPS and shipped out. Today I get an email stating that one of the lantern's top was broken. They sent a photo but it's not very bright.
The cost of both Lanterns was $9.95 + $5.30 for shipping ($15.25). The buyer has asked me to cancel the transaction and refund $9.95 to their PayPal account. I want to do the right thing but it seems like they're going to get the products for free if I do that.
Would you refund the $9.95 or only half of it which is $4.98? Are they entitled to receive a refund for shipping as well even though one of the items was fine?