In reply to Jeff Chandler.

I agree with Jeff and would like to add that some shops overestimate how well their products are portrayed in terms of educating prospects what a product will be able to do or not do. In some cases it's really hard to know if something will work until you have it running. This is especially true for particularly involved solutions with a longer setup time (shopping cart, membership software), if a customer wants a refund they most likely have already stuck a lot of time into trying to make it work.

The thing with offering no refunds is that it forces the product author into an adversarial role with its buyers. They only exist to prevent abuse and uncompensated support time. But denying (reasonable) refunds creates a negative reputation not just for the product, but for the marketplace as a whole. I think it's not consumer friendly and hurts the bottom line down the road. How many people have stopped buying at themeforest because in the past they've had bad experiences for which they could not get refunds?