How to issue a partial refund when a buyer returned a damaged item

[bksgolf]

I had a golf club returned after the buyer said, "It doesn't work".  The club was nearly brand new and the pics are the proof.  When the club returned the head had a slight crack on it that caused it to start to separate from the face of the club.  I want to issue a partial refund but I can't see where to do that.  I get to the point of explaining the problem and providing pics of before and after but it won't let me type in a partial amount.  Is something Ebay determines and then issues the partial refund.  This item is no longer usable and I don't want this buyer getting all his money back.

[bigdeals.etc]

Did the buyer file a return thru ebay's return process, or did they just send it back to you?

If it's the latter, you can issue a partial refund thru Paypal or MP (depends on what payment processor you are on). If it's thru the ebay's manage returns page, the ability to give a less than full refund depends on if you had free returns enabled on this listing. Did you?