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Item received broken where do I stand?

I received today some fish tank ornaments. 3 larger ones and 4 smaller ones all childrens characters. The seller had just put them all in a jiffy bag with no extra wrapping!! They'd even placed the 4 smaller ones inside one of the larger ones. When the postman handed it over to me it was rattling. 1 large one has lost its top and other small bits which stuck out and another has a chip out of it. The 4 smaller one as they are characters have lost eyes, arms and legs, only one is intact!! There was a handful of chipped pieces in the bag. The jiffy bag wasn't one of the strong ones either only the type i would use for cds etc

I've messaged the seller. I paid 12 plus 4 postage. The seller says as I can use one large and one small (true) he will refund me 6 pounds so I've got them half price (his words) otherwise he wants me to return them all to him and he will then refund me the 12 sale price, but then i will have lost 4 postage and another 3-4 in return postage.

Where do I stand? I appreciate I can use 2 of them, but wanted the set! It clearly is the lack of appropriate packaging that's caused the issue.

Is the seller being reasonable with his offer?

Thanks so much

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