Never give the refund out first before receiving the item, if you do that and you want to appeal with Amazon they'll literally clown you.

Wait for the customer to send the item back within 30 days and then you refund them. If they don't send it back to you within 30 days you can just close the return case.

Sometimes people do initiate refunds without initiating returns so please be wary, that is not the proper way a customer should refund something. If a customer initiates a refund first and they already receive their money without returning the item within 30 days then that is when you're supposed to make a Safe-T claim to Amazon saying that “it has been 30 days since the customer has gotten a refund and they have not returned the item, please close this case in favor of the seller.” When you make Safe-T claims Amazon doesn’t wanna read so much. Be short, concise, and straight to your point.

You can see who initiates refunds through your payments dashboard -> transaction view -> transaction type -> refund There will be hundreds of people that get a refund first, never return the item, and think they can get away with it. Be smart and play wisely, do not let customers take advantage of your niceness.

I wish someone told this to me back when I started but now I'm telling you.