Refund for FBM – How do you handle?

I got a return request which Amazon auto-approved. I see a tracking number but no shipping history yet.

I contacted the buyer to get more info but haven’t heard back after 24 hours, and likely won’t.

My question is, I never had a return request yet. Do I have to hit the refund button now (and Amazon refunds when it arrives) or do u wait until the item is returned?

Curious if the auto-approve is when Amazon issues the prepaid label or if I have to confirm it for that to happen.