When you refund the order, the purchase price of the item, the shipping and sales comission paid to HandmadeGuild is refunded to the customer.
#1. If you wish to only refund the purchase price what you would need to do is communicate with your buyer, reasons why they wish a refund and if approved by you, then their paypal email address, etc..You would have to request a withdraw of your funds on HandmadeGuild.com ($25 or more) and then personally refund your buyer with the information they provided to you. The HandmadeGuild refund system, does not allow partial refunds or restocking fee charges, we hope to change this in the future.
For example: The customer receives their order but does not like it or it arrived damaged and they want a refund, they contact you and wish to return the item (if this is what you want is the item returned) to you and you agree, once received by you then you issue a refund. You have told the customer you will only refund the price of the item, you would have to do the above mentioned.(See #1)
Another example: Buyer buys your product, you make it and have it ready for shipping, the buyer contacts you and wants to cancel their order. You communicate with them that you will cancel their order, however you will charge a cancellation fee of ??$, you would have to refer to #1 and process the refund on your own.
#2. If you wish to refund that entire order price, shipping and commission, you can do this inside your shop dashboard. You cannot take a restocking fee or cancellation fee UNLESS you refer to #1.
You can also issue the customer a refund in the amount you all have discussed via paypal without requesting a withdraw and then once your balance reaches $25 or more request it.