Buyer now wants to collect item but has already paid for postage.

[stu0779]

A buyer now wants to collect item rather than have it posted as they live locally. Can I refund the postage and not generate the postage label to manage this? 

[papso22]

That is risky for a seller as you will have no proof of delivery or the collection code you usually get with an item listed for collection.  You are completely open to a claim of item not received and will have no defence that ebay will accept.

If the item was relatively cheap you can refund the postage element and take the risk, otherwise you may want to cancel the sale using 'buyer requested' and relist with collection as an option.