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return and refunds

a guy wants to return an item says it doesn't work however it worked when I had. my question is why do I have to pay for a label? it means they will get the total refund for the item and shipping plus the price of a label, which means I'm losing money, Also I'm a top rated seller which means I get discounts on shipping, but he is getting a full refund plus full refund on shipping, which means I'm losing money. I don't get it....

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