Return request on an item offered with free P&P?

[trainsbirdsandcars]

Advice required please on a return request...

Here's the full description as it appeared with red highlight.

Note: The first line is an exact copy of the actual listing heading

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Betamax Video Cassette - Steam View Volume 4 by Transport Video Publishing

January 1987 Viewing Time 55 minutes

Details of the contents of each programme can be found in the 2nd photo

NOTE: This is a BETAMAX cassette which is not suitable for use with VHS tape players

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Buyer requested a refund with this...

Reason

Ordered by mistake

Comments

this was ordered by mistake not realised this wasnt on VHS format

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Quite unbelievable given that the buyer's email address includes; videosanddvds@etc...

You would think someone who has an address like that would know what they're buying!

So having now accepted the refund to meet Ebay's requirements I am now waiting for it to be returned.

My questions are; once the item is received is the refund automatically generated by the system or can I do it manually?

If it's manual am I allowed to reduce the refund amount by the cost for the initial postage?

Any guidance would be appreciated,