Log into your account and to the left side of the page. There, click on “sold” under the “Sell” heading. Locate the product that you have sold and now wanted to be refunded. Click the “Actions” drop-down menu and go to “Contact buyer”. Complete it and have the message sent to your buyer. eBay do give this freedom to the people themselves to work out their best way for the two of you to settle for the money. In general, you can just issue the refund with the same way a buyer purchase an item.
Under eBay refunds policy, you face the risk of not receiving all the money back. You can, however, dispute this through the Resolution Center. Then there are differing rules for the fees. The listing fees and the final value fee, FVF (your final sales price). There are three available options when opening a case. If you haven’t received the payment promised, then the buyer will be given notice to pay within 4 days. eBay will give all the FVF. If you wish to cancel the transaction, your buyer would have a week to respond, if it succeeds, you will get back your FVF. For your case, which is a dissatisfied customer, then you can resolve a transaction problem. Settling the dispute will return your FVF, although not the entire amount if the customer disputes the case first. You can take it as some sort of lawyer fee. The best way to get the most back is still through settling it “outside the court”. There you have the answer of how to refund on eBay.
Furthermore, your initial listing or entry fee is will not be refunded no matter what happen. However, say you relist that refunded item again, you will be charged with another entry fee, but you get that second fee back if the product sales again. Do note that you need to wait for the FVF to return before you sell the item again.