Order cancelation request from buyer

[trendyz_store_8]

I am a new seller on Ebay, a customer ordered for a product on my store and after some hours requested that the order be canceled because he thought the product was something else,  but it wasn't what he intended to buy. Being skeptial that I might be fined if I cancel the order on my own, I asked him to contact Ebay and request for a cancelation. To my greatest dismay, the message I got from ebay was that the buyer claimed he didn't receive his order and therefore has requested for a refund. The order was placed same day that the cancelation request was made. Now Ebay is asking me to refund the buyer if I cannot fulfill order, when in actual fact I can fulfill the order, just that the buyer is requesting for a cancelation. They have asked me resolve the issue before 7th of December. Meanwhile I haven't received the funds for the order, it is still on hold. What do I do? I need a candid advice . Thanks 

[wooden_flower]

The seller is the only one who can cancel - there is no penalty if the buyer requests it, so next time just cancel the transaction as buyer requested.

You have to pay for the refund, then eBay will release the buyer's payment to you.  So go to the not received claim and click 'refund buyer now'.