Sounds odd .
Was this originally listed as a postal item, and now you and the seller agreed it can be collected?
Then, the best outcome here is for the seller to cancel the order citing Buyer Requests to cancel, this fully refunds you and their seller performance is not affected.
They can then relist the item as a Collection item only. You can buy the item again from the listing, and pay for the item through eBay checkout, cash on collection is no longer allowed. This will give you the very important 6 digit QR collection code to give to the seller. It's their only proof when scanned , to show the item was collected and will release their payout sooner.
@stevesteve307