Atleast once a month, I get a buyer who says that they never received item even though tracking info says it was delivered. I also have had buyers who wanted to return their items after the 14 days which goes beyond the 14 days stated in my listings.
Several times they opened Paypal case against me. If the item was returned within 14 days for any reason, I have no problem giving them a refund. If they open a case for any of the reasons that I mentioned in first paragraph, then I would respond to the case online. In addition, I call Paypal directly. This is important to speak to a live person. If you are in the right, they will investigate the case. If the Seller has done everything right, they will usually go in their favor. Also, make sure that you block the Buyer so you don't have to deal with them again.
There are a lot of people out there trying to rip Sellers off. As a Seller, you need to keep your tracking records and be aggressive by calling Paypal or eBay(depending on where the case is open). It has worked for me.
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