I did not say that I had to make money, said that I would prefer not to lose money. Just playing Devils Advocate here. Let's say the coral was $60 and shipping is flat rate $50. It's really costing me $70 after I pay for the box and heat pack and gas to ups though. So the $60 coral us dead. If I refund you $60 I lose $20 plus whatever cost I have into the coral. If I resend the coral it's costing me another $20 in hidden shipping cost but at the end of the day I may have made $20 minus whatever cost I had into the 2 coral.
That is why the majority of companies only offer store credit. The are already absorbing some of those costs.
As far as UPS or FedEx cost if shipping, no vendor is making money,no one refunds shipping that shipping costs.
As others have said, that is not the same thing and no, no one insures a dead box of coral.
I had Delta pull one of my commercial shipments off of 3 flights in LA 2 weeks ago. When I finally got it a day late there was 1 Acropora in a box left alive and half my fish were dead. $3,000 and a big welp that's how it goes some times.