the buyer entered the wrong address in the order and is now demanding money

[ladashopukraine]

The buyer ordered the goods and provided the wrong address.
This address does not exist and the package is now being returned back to me. I have to receive the parcel within a month, also I have to pay the return shipping cost to get the product back.
The buyer agrees that this is the buyer's fault, but the buyer opened a dispute for a refund.
I have confirmation that I have sent to the specified address and there is tracking.

item cost $25
shipping cost to buyer $15
Shipping cost back to me, the seller - I'm guessing $15.

Question. How much should I refund the buyer:
40 full price (cost 25 plus shipping 15)
25 the cost of the goods (then I will have a loss of 15 dollars, which I have to pay when I receive the package back)
10 (cost of goods 25 minus return shipping 15)

This order is small, but I need an answer to resolve such disputes in the future.

I would like to know your answer.

And also what decision does eBay take in resolving such disputes

[pickermall · Accepted solution]

Not sure about Ukraine Ebay (maybe the same as USA?) but I would refund only the $25 for the item. The shipping address was wrong, as provided by the buyer on the order. They can't REALLY demand a full refund. If they opened an "Item Not Received" dispute, you would upload the tracking info and the dispute would normally be resolved in your favor.

If they threaten negative feedback to get a refund, that is feedback extortion, and would be reported to Ebay.

AND you can't really do anything until you get the item back, anyways.