How do I cancel a listing? .... I've changed my mind

How do I go about this and is there a penalty for doing it?

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It is your item and your choice whether to sell or not. From time to time I am away from home for a period, so before I leave I cancel all my listings. I have never had any problem doing this and neither will you. Just choose the option, item no longer available. Items then all go into your unsold list and are there to be relisted if you wish to.