Issue... solved

Level 9
Update, i worked out a small partial refund with the buyer.

I sold a brand new crib set, the buyer asked several questions prior. I informed her it was new. It was delivered today and received a photo of 3 loose threads about 3/4 inch on the seam of a ruffle. Buyer says looks like factory flaw. It is so small that I could have easily missed this. Although I didnt really inspect it as I would a used item because its new.
I asked the buyer if she would like to return, am I out my entire sale and my item $60. What happens now? I have never seen a follow up to this question

Thanks in advance.
Level 7

great resoution!