Customer paid expedited shipping to wrong address, who's fault?

[tugandtow]

We offer regular shipping and, at a cost, expedited shipping.  A customer ordered a product and paid for expedited shipping.  Problem is, the product couldn't be delivered to the address they specified so the product was returned to us.

Customer opened an "Item not Received" case and has agreed that they are ok with a product price return without the shipping cost return.  Since they've opened a case, I have no way of doing a refund with refunding the whole thing.  eBay doesn't even give me an option of talking to them to discuss what should happen.

Now, I just know that as soon as 3 days pass, eBay will just pull the trigger and issue a full refund to the customer regardless.

Any way of avoiding this?

[albertabrightalberta]

Respond to the INR case with the tracking number. In the comment section, add a note that "item was shipped to the address supplied by the buyer. Address was invalid/incorrect and item couldn't be delivered." 

You will win the case because inability to deliver to a bad address is considered to be delivered. 

If this were my case, once I received the item back, I'd issue a refund for the item price, deducting original shipping (since you spent it). Although you aren't obligated, my opinion is that the seller shouldn't benefit by having both the money and the item.

[albertabrightalberta]

Note that you MUST respond and input the tracking number into the case. 

[bonjourami]

You can issue a partial refund. Seller Hub/Orders/Paid and shipped. Use the drop-down menu to the left of the order to 'Refund', enter the amount, confirm and submit.