Happend to me many times, i've also gotten the comment "If I had known you where a collector bla bla" simple excuse and how hard is it to ship properly?
Can't even count all stuff I have gotten so badly packed that it's broken, or stuff adverticed as not broken but then every single piece are. And yeah take the refund, it cost more to send it back.
I filed my first claim to ebay on a case close to yours. It was a Ahsoka Tano CW 44, I wanted a moc to have in background display. It came in a cornflaces box... sure he did add some news paper to pack it with but the box couldn't hardly make the trip around the world without damaging the moc, half of the box was crushed and so was the moc.