If I offer a refund before shipping (minus a $10 fee), will sales go up or will buyers abuse it?

I sell custom handmade items ranging from $50 to $300 where every piece is made to order. I’m thinking about testing a new policy to build trust and increase sales, but I wanted to get some feedback from experienced sellers first.

The idea is that after a customer orders and approves the initial design, I make the product and send them real photos of the finished piece before shipping. If they look at the final photos and feel like it’s really not what they expected, they can cancel and get a refund, minus a small $5–$10 fee. The fee isn't meant to cover my material costs, it's just to stop people from abusing the option or placing fake orders.

My calculation on paper is that even if 30% to 40% of people end up canceling, the economics should still work out well for me if the initial conversion rate (sales rate) goes up by 2x or 3x due to the higher buyer trust. Has anyone tried something like this? Do you think it actually boosts buyer confidence enough to outweigh the risk of being left with unsellable custom items? Also, as a buyer, would a policy like this make you feel safer, or would it look suspicious?

One specific concern I have is regarding Etsy- could offering a refund while holding back a custom $5–$10 fee cause any policy or case issues on Etsy's side? I’d love to hear how you would modify or execute something like this to make it safer, or if it's better to stay away from it entirely. Thanks.