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Yeah, it's really straightforward seemingly and not something that's a matter of opinion such as condition or value etc. He's sold something that hasn't turned up essentially so should offer a partial refund you can agree on or offer to cover every penny of return postage - as long as it's insured and tracked cheapest is cool I reckon
Dick move IMO. They should at least cover the full cost of the return postage, it's not your fault they did a false advertising.