You must refund the buyer separately. Also be sure to advise the buyer why you are canceling the order, like you can't locate the stamp. Remember you can't cancel an order simply because you don't like the amount realized from an auction.
Granted there is no profit. However, you must build this possibility into your pricing and shipping charges. Even if you cancel the order, you will still pay PayPal, they don't refund fees. Many times I sell a single 10 cent stamp to a buyer, but I still make money because I have built a minimum profit into my shipping and handling charges.
John said that a dealer may not cancel an order simply because he/she didn't like the results of an auction. I have had that experience as a buyer and reported it. I received an apology for the experience from Hipstamp and an expression of regret. But I never knew what action (or penalty) was taken. Is anyone aware how such things are handled and discouraged?
Comments
Thank you for the advice.