You forgot the bit where I had to continually chase you down and ask for a refund over and over. Also your story misaligns a little with what you told me (you said you send a cheque, but that didn't attive)
I get that your a newish company, and you have lower profit margins. But your 'issues' that come up are of your own making. If you cant handle the load stop taking peoples money, or put up prices to slow demand. Either way its easy, just stop screwing people around.
I gave you my money in good faith you would send my pants. 8 months later I still have nothing to show for it or my money back. Please explain to me how this is fair?