If the buyer has a change of heart, I wouldnt refund the shipping. They have commited to buy and are contractually obliged too. If its damaged, I refund the full amount.
Basically, if it turns up damaged, your screwed. You have to go throught the ebay dispute process and then refund and file a claim.
The problem is couriers will not pay out on anything fragile so your looking at a partial refund or a returned damaged item. This is where there is scope for the buyer to take advantage as they could say there is a faint line under the base or there is a small paint chip .... and I want $100 off!!
Iv even heard off buyers asking for partials for dinged boxes lol.
What I also hate is the last time I issued a refund, im sure you now pay a refund fee with ebay, around £2 .
And then paypal issue the refund by Echeque so the buyer has to wait a further week or so for theyre money to arrive.
So basically a bombardment of where is my refund, when am I going to be refunded, still no refund......
Too much drama .