Whoever pays the return shipping charges will be noted in your original listing. If you're paying the return shipping the buyer just has to click on their order details and select return item. They will be prompted to print out a shipping label and you will be charged for the return shipping charges once you issue a refund.
If the buyer is paying the return charges they have to prove they shipped the item back to you and I definitely wouldn't allow a C.O.D. After you receive and inspect the item you will refund their purchase and then be credited back your final valuation fees.
You are very generous for allowing a buyer to return an item after 30 days.
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