to return or not to return my kid's bike seat

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I ordered a belleli baby carrier seat and arrived just this morning. When I installed it in my bike, it was ok. Sturdy, new, looking safe. When I had my kid sit in it, he was kinda scared and his shoes wont fit the footrest. So when I pedal, my shoes bumps his. It irritated me that I decided to return it to amazon. So here I was with the label and authorization codes ready to be picked up by UPS tomorrow supposedly. I read again their return policies and learned that products returned not in their original state will only get 50% from the total purchase! and shipping fee will also be deducted since my reason for return is not for damage, exchange, replacement etc. I have removed the tag and I cannot see other damage on the product. Just the tag issues. Is this considered not in the original state of the product? WHich is wiser? To return it to Amazon to get the partial refund? or just sell it on craiglist for a better price. Of course. id rather just use it before selling. I can't even figure out what a shipping label looks like since I hit print and the authorization only came out.