Hi,
I'm surprised you were able to have the negative feedback removed. So yay for you! Even if you offer only a 14 day return period, eBay still has the 30 day money back guarantee. The buyer should have opened a return and gone thru the process but since they did not you have two options to resolve this in my opinion.
1. Contact the buyer and ask them to start a return.......I would actually avoid that at this point so they don't have an opportunity to choose a reason that causes a problem for you.
2. Refund them for the purchase price directly thru PayPal and then take a screen shot or print it and then scan it in so you can send it to eBay to get your final value fee refunded to you. If you refund 80% of the original purchase price you can get your final value fee refunded. If you have a restocking fee of 20%, you can waive it if you like or deduct it prior to the refund. Then contact eBay and ask about getting your fees back.
Then I would contact the buyer and tell them you recieve the item back and have refunded them and give the refund transaction info, and then I would add them to your blocked buyer's list.
