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return/refund buyer

A buyer was upset when they found out that they could have purchased the item they bought for less. Feeling they had been scammed, they asked for a full refund. I offer refunds in almost all of my listings, so I agreed to issue a full refund. I asked for the buyer to give me the return tracking number and then I would issue their refund. The buyer replied by stating they would send the item back after I send them a return shipping label. My question is, is that what needs to happen. What is the proper procedure/steps. I read settling matters without eBay's assistance is best, to keep from getting a defect, which could affect a sellers rating.

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