Buyer said item was working but now isnt? Wants replacements?

[letsgoshopkins99]

I sold 3 items july 1, shipped same day, delivered july 3. This morning, july 4, i wake up to a message from buyer saying the items worked great when received, but today they dont work. Items are small toys that change color when held in hand. what is the best course to deal with something like this? 

[*eponymous*]

Issue a refund or pay for a return label - and refund when you get the toys back, whichever costs you less money.  If the buyer opens a return case, eBay will give you those choices.  Never escalate a case as a seller...

As a seller, you must understand that you will lose money on an occasional sale - you make your money at the margin, after all costs are deducted.

You might want to test the toys out yourself to see how durable they are.