The term refundable refers to something that can be returned or exchanged for a full refund, even if it has been used or damaged. This means that once the item is received back by the seller in its original condition, they will issue a full refund without any deductions or questions asked. Refundable items are typically sold with a guarantee or warranty from the manufacturer or retailer, promising to take back the product and provide a refund if it does not meet expectations.