I think you did right,,,if you aren't going to ship the item purchased then what else could you do besides refund all the money sent to you???
Do you still have the kit?? or did someone else puchase it?? Still not sure why you wouldn't send item to buyer after he paid for item at the price you both agreed on and extra for shipping...still something missing here , but as long as you are both happy,,,guess it dosn't matter