Buyer's package arrived back to me and they want a refund

I’d sent the package immediately after they paid (31th July) and they failed to pick it up. About 1 month ago it arrived back to me with the notice that the Recipient failed to pick the item up. I sent them an eBay Message giving them the option of either a refund (minus Shipping) or them paying me enough to ship it to them again. Today, they responded and asked for a refund. The problem is that I cannot cancel the sale on eBay anymore. I could refund via PayPal, but then I’d have to keep the eBay fees I had paid. What is my best option here?

Call ebay customer service and they’ll cancel it for you.

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Tell them the exact scenario. Perhaps give ebay a call and see how they advise moving forward. I know any denied package the buyer loses their buyer protection. But I am not 100% on how they handle unclaimed packages.

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Thanks. I’m going to call eBay tomorrow and will reply here again with an update.

Correct, its all in the in terms and conditions. Same goes for international customs fee’s, its the buyers obligation. So you’re technically covered. I’d call ebay and see what they can do, but make sure you don’t lose any money out of the situation ( fees, shipping, time off market )