Anyone know how to give a refund?

[Monkeytrousers]

I listed a dress as from Coast instead of South by accident and now the buyer wants a refund. Have never done this before so any tips?

Hiya - did they pay by Payal? If so get them to return it first then if you go into the details of the sale in Paypal very near the bottom of the Transaction details screen there is an issue refund link. That way Paypal refunds the fee that you paid on receiving that payment.
You can also issue a part refund there too if you choose to.
I believe you need to include the P+P the customer paid for you to send it to her.
Whether or not you are also required to pay for her to return the item to you I'm not sure but as it's your error I'm sure you'd want to and she'd expect it.
Will she accept a part refund as it's a different brand? Could you come to a compromise?

Yes, I'd include p+p and her postage back to me.

She is asking for a refund first before send it back. Would that invalidate getting the paypal fee back?

I'd rather just sell it again as a South dress rather than offer a part refund too.

the rule is no return no refund. If she opens a dispute paypal will tell her this

Do you mean she wants the cost to return it to you up front or all of it?
I (and most sellers I think) would be reluctant to refund in full before she returns it - I don't think she can ask you to but I couldn't actually find it in the Help pages. What's she sound like - trustworthy or trying it on? What's her feedback like?
Also I don't know if you'll be able to refund more through paypal refund than the the original transaction amount. You may have to send the rest through Paypal by the "Send Money" tab and be aware that buyer will have to Pay Paypal fee to receive that bit. If you need to work out how much to send if you want buyer to get the correct amount minus the fee this is handy