I sold a low value item to a buyer with a zero rating. The listing had full details and photos of the item and was listed as no returns. When the buyer received the item they messaged me saying they wanted to return the item as it didn't fit there equipment. I pointed out to them that it was fully as described and photographed and that the listing was non-returnable. They then raised a return request as a 'Doesn't fit'. Again I rejected giving the same reason and the return was closed....

Your buyer opened a return using a change of mind reason. That is not covered by ebay seller protection under Simple Delivery. Because you don't accept change of mind returns you were able to reject the request. The buyer appealed and ebay issued a courtesy refund from their funds, not yours. Buyers can only open one return case, after they did the change of mind one anything else in messages is irrelevant.

I rejected a return request and Ebay still paid out | Member To Member Support

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I rejected a return request and Ebay still paid out | Member To Member Support | eBay UK