I'm doing a tiny launch using a minimum viable product to gauge demand for a physical product. I literally have 6 units. I sold one via a giveaway/email promotion on a forum and mailed it out same day via USPS Priority 2 day.
The buyer promised to put a review on the forum with photographs(I didn't ask him to, he just emailed me and said he would.). He's a user with 900 posts so his review would carry weight.
Now it's been 12 days and USPS hasn't delivered the item. I've been to their physical office twice and have been given a more detailed tracking document from their internal system. Apparently they're backed up and simply haven't sent the truck from my city to his yet. They can't give me a delivery estimate but assure me it'll get there.
He's now demanding a refund or that I mail out a new unit. I can't really afford to sacrifice another unit. Should I just refund his money and eat the cost? It's only $50.
This is part of widespread USPS issues and I have personally had packages delayed as well. I doubt most e-commerce sellers would give me a refund in this situation...
What do you guys think?