parcel delivered to wrong address

hi everyone , just wondered if someone can help me. i sent a item with hermes and was delivered to wrong adress. customer been to neighbours and they said they returned it to courior as no one of that name live there. i contacted hermes and they said it was delivered to that house and left in outbuilding as no one was in. so what do i do ?? do i give the customer a refund  as i only had one  , even though my gut feeling is telling im being ripped off  by customer and his nieghbour. it went 14 in stead of 41 !!!!

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