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Package returned as unclaimed and unable to forward

This may have already been answered before but I couldn't find it, and ebays help section isn't very helpful. 
I had a package I sold returned to me the other day marked as unclaimed and unable to forward. I had the address correct as was provided by ebay. I have sent the buyer 2 messages so far with no response. What do I do next? Am I supposed to refund the cost of the item when the buyer won't respond? I don't feel I should have to refund shipping since there was no error on my end.

Thanks for your help, this is a first for me! lol 

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Re: Package returned as unclaimed and unable to forward

Refund minus shipping and cancel using problem with buyer’s address.

Everyone has options. Just be sure the best option is right for you.
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