Need some help on a return item

[watchesbydan]

Hi, I could use a little help on a returned watch. Customer bought the watch and had it for about  a week. Emails me and says it is running slow a couple of minutes a day. Watch was sold as it not checked for time keeping.  It was an automatic self wind watch.  So I ask  if he was wearing it to keep it wound? No answer from him. Couple of days go by and he sends a picture of it on his wrist so I assume it is now working for him.  Three days later he emails and now says it is not working for him.  I tell him to send it back and I would refund him.  Again nothing from him for days.  Have no idea what he is doing.  Went to the post office to pick up my mail and there is a package from him.  So I guess he want me to look at it and see what can be done.  He sent it back on his own cost.  Couple of hours later he opens a case for not as describe.  Of course eBay puts a hold on my funds and a return shipping label.  Now I have the watch but no way for him to send it through eBay. How do i refund and close the case as it will never show that it was shipped back to me?  Just a side note as to the watch when it came back.  The balance staff was broken and the dial was broken off the movement so it is of no use to anyone. Any thoughts of how to handle the would be helpful. 

[whattheactualfox]

Quoted from ebay's seller protection policy:

Sellers who offer free returns and who are not Below Standard are eligible for this protection

• You can deduct up to 50% from the refund to recover the lost value of the item
• We will take care of any issues directly with the buyer for you, including removing any negative and neutral feedback, defects, and open cases in service metrics

If we are asked to step in and help, you will no longer be able to issue a partial refund to the buyer. Learn more about refunding the buyer.

I would see if it is possible to refund the buyer, if they sent back the item