I don't understand why you bought an item which was clearly for collection only and then cancelled it because you could not collect it.
That really is not Ebay's fault or the seller's fault. They certainly have not 'joined together' to steal your money.
If more than 3 days have passed and the cancellation has not been processed, you could get a callback from Ebay to see if they can cancel the sale and process your refund.
Use the link below to get a callback.
https://www.ebay.co.uk/help/eua?id=5275&mkevt=1&mkpid
"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)