Re: opened case
It is just bad luck this happened on your first sale. Refunding the buyer was absolutely the right thing to do. Your account is UNLIKELY to be closed because of this, especially since you refunded the buyer. But if you get a string of these, then my opinion would change.
TIP: Get a PO Box at the post office. They are cheap, there is no need to get a big one. Use the PO BOX as the return address on your address labels. If you receive a message from a buyer that hey are unhappy with their item, just send an email apologizing for the inconvenience and ask them to simply return the item to the address on the label. Most buyers will do this.
If the item is reasonably small and low value, just let them keep it and give them the refund without mentioning the return. Most will then go away. If they ask where to return it after that, just tell them if the item is bad, you don't need it back since you would not resell a damaged or defective item.
If you must get the item back for some reason, offer to send a prepaid mailer for it, or arrange a UPS pickup. That costs money, so I would only do that if the item were of a high enough value to bother with it.
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