I have small wrists too and I don't really like oversized watches on me..
I think the watch looks good on you, but if it feels uncomfortable I think you should return it..
I don't like the size nor the design but that's just me. Do you like it? Also you might want MOD to move this to the Jewellery sub-forum, you may get more response there.
My MK watch is about that size and I have regretted purchasing it and have since purchased 2 smaller faced Skagen watches. its really hard to stack and layer and I am always bumping it into things
I like it. I bought the MK 8077 for my daughter, she's about 5'2, 105lbs and I think it looks great on her but I think it's just about personal choice, if you are having second thoughts, then return it.