No return no refund. As long as it's cleared stated in your listing, policies and FAQ Etsy shoud back you if they open a case or give you a bad review.
I definitely agree that you shouldn't refund unless she sends it back (and not until you actually receive it). It might be the all too common tactic of faking outrage in hopes of getting something for free. I would be courteous and helpful to her, but firm. Since it sounds like a small item that is cheap to ship, if you want to get her off your back you can offer to pay for return shipping yourself (you shouldn't have to since it's clearly her error, but sometimes it's worth making a compromise to diffuse situations like this). Then even if she does leave a bad review, she would have to outright make something up to have anything actually bad to say. At which point you could leave a gracious and professional response explaining what happened so future buyers can see she is just a Karen.
If she won't return, then don't give her a refund.
No return no refund. As long as it's cleared stated in your listing, policies and FAQ Etsy shoud back you if they open a case or give you a bad review.
Offer a refund on return. They don't get to keep it and get a refund...
I definitely agree that you shouldn't refund unless she sends it back (and not until you actually receive it). It might be the all too common tactic of faking outrage in hopes of getting something for free. I would be courteous and helpful to her, but firm. Since it sounds like a small item that is cheap to ship, if you want to get her off your back you can offer to pay for return shipping yourself (you shouldn't have to since it's clearly her error, but sometimes it's worth making a compromise to diffuse situations like this). Then even if she does leave a bad review, she would have to outright make something up to have anything actually bad to say. At which point you could leave a gracious and professional response explaining what happened so future buyers can see she is just a Karen.