This transaction has unreasonable terms and no terms and conditions can hold up in court if they are extremely lopsided which they are in this case. It is good that you are not scared of court threats. But I didn’t threaten you.
You know that the buyer did nothing wrong and he is out the full amount for your mistake of insufficient packaging. I think you are choosing the right direction by offering half the refund. You can move a little forward as remember that the buyer didn’t even touch the package.
I don’t think anything should be cleaned from this thread as the prospective buyers should know how you deal with any issues. Moreover people should stop buying from such sellers who put such lopsided conditions such as those who are upvoting your comment.
If a parcel is damaged in transit, the damage should be borne equally by both parties, right? One of those parties did not agree with that and stated that clearly. The other party knowing this, and knowing that they alone will bear the damage, went ahead with the deal? So who should suffer the damage, I wonder!
Why are you berating the seller alone in this case? Your choice of words is sympathetic for the buyer's loss but simply ignores the seller's loss. Here, the seller is willing to bear half the loss even though they did not agree with it on the onset. Whose fault is it if they were happy with the item remaining unsold but now are out of an item and also have to shell out money from their own pocket?
And that brings us to the shipping/packaging part. Your argument is that the buyer has not even touched it, but the seller is responsible for packaging. Agreed. But suppose there is a way to ensure 100% safety of the package as a packager, is there any guarantee that Indian shippers won't damage the package still? No matter how good you are at packaging, there is always a possibility that someone else is going to ruin it for you along the way. Who bears the blame in that case? It's hard to get them (shipping agencies) to accept their fault and get compensation/refunds. Ideally, both parties should bear damages in such cases. But most sellers do not want to take that risk and hence want to sell local if possible. There is nothing wrong with that.
It's completely fair and wise to avoid dealing with such sellers if you are not ready to take the risks. Neither party is doing anything wrong here. If you can't reach a mutually beneficial deal, it is better not to deal at all. I have let go of good deals because I wasn't sure if shipping some delicate items at my risk was a good idea, I'm sure other people have done the same too.
I bought two hard disks from the OP of this post in this same thread, and as a buyer, I was not ready to bear the risk, so I confirmed with him if he would refund for Dead-On-Arrival items and he agreed graciously. My disks came unharmed and we exchanged positive feedback. As a responsible buyer, we should do our due diligence and ensure our money's safety. If you can't negotiate terms in your favour, you should not be buying. If the seller categorically tells you they won't share the risk, you should not be buying. The seller is not forcing the deal on you. Just don't go about buying stuff after agreeing to someone's terms and then cry about unfair terms and legalities.