First of all have you finalised the first transaction? The buyer has paid for the item and it has been returned to you. You need to refund the buyer.
If the item is back with you, cancel the transaction citing ' Problem with Buyer's Address'. this refunds your buyer, and your seller performance is not affected.
You can then relist the item.
Send the buyer a message what has occurred and that you have relisted the item if they wish to buy it again.
@cornie67