The best thing to do here really is to pay to post the item and get it sent. That is what I would do.
If the buyer paid for Simple Delivery, the postage paid will be refunded to them.
The tracking will be incorrect but that can be updated.
If it is not updated, payment will be made 14 days after the sale.
The alternative would be to cancel the sale. I would not do that as it may lead to negative feedback and a defect on the selling account.
"There are two ways to be fooled. One is to believe what isn't true; the other is to refuse to believe what is true.”
Søren Kierkegaard, Danish philosopher (1813 - 1855)