From an ethical and business reputation standpoint, I think the right thing to do would be to refund the entire BTC balance (if they never sold the BTC) or refund the USD equivalent, shipping including, of the BTC at the time that the order was made (if they did sell the BTC). Just my opinion, but I would find either of these to be an acceptable resolution, and I believe OP would as well.
If a customer makes an order, and it can't be shipped for whatever reason, then you contact the customer immediately and come to an agreement, then public shitstorms like these will be avoided.
Exactly. I made the order Feb 6. No confirmation was sent to me, until I asked for it at Feb 13. No mail was sent to me until Feb 27 when I asked for information again and it was told to me that the Krugerrand cannot be sent to me. Three weeks from order! "We will see, what we can do" was replied to me. After next urgencies at Mar 5 I was asked for other week of time. At the moment I believed that I lost all my money and my patience was over. No mercy to scammer. A day later it was offered me $1600 and I have to wait another 5 days for answer. Then I write to this forum.