Ebay return / refund

[GMac11]

This one is new territory for me so hopefully someone can shed some light. I needed to return a faulty item (delivered from Netherlands) which was agreed however the seller's return address is in Australia. I then decided to negotiate a partial refund to save any further hassle which again was eventually agreed upon.
However the seller is saying they can't initiate the partial refund until the return is closed and they also can't do it through PayPal. They have excellent feedback and I do genuinely believe they can't figure it out but I'm wary that if I close the return I have no further leverage.
I'm thinking at this stage it might just be safer to go with the return, no matter how costly given the amount must be refunded anyway.
Any thoughts?

 

[GMac11]

Thanks all. I'd consider myself quite savvy when it comes to online scams etc and I'd definitely make sure to leave myself covered. I was curious to see if there was any way out of this with getting the partial refund without anymore hassle, which appears is not possible. As for the return to Australia, I guess you have to go with the address provided regardless of where it is to ensure you are within eBay guidelines. After all as has been mentioned the seller must cover costs anyway so that's their problem.
It's a bit of pain that I'll have to wait for a considerable time to get my full refund is all.