The buyer returns the item to you. When you receive it,you refund the original payment including postage.
OR
The item was not satisfactory because it was damaged. The buyer sends you photographs of the damage. You refund the original payment.
OR
The item is not satisfactory because of your error (usually incorrect description or poor packaging leading to damage). The buyer returns the item and you refund the original payment AND the return postage.
The important thing is NO REFUND WITHOUT RETURN.
Neither of you can have both the item and the money.