If the customer must be refunded within 14 days from withdrawal, and the order has just been shipped and they do not collect it – do we have to refund before we receive the items back?
No. You can withhold the refund until you have received the goods or proof of return. If the customer notifies withdrawal but does not collect the parcel, wait for it to be returned to you before processing the refund. The 14-day refund clock starts from when you confirm the withdrawal.