Reply To: Not paying for an item
If the buyer has been pleasant and appears to have a genuine reason for wanting to cancel, I would send a cancellation request providing he has asked for a cancellation through ebay messages. Then send a message asking he accept the cancellation so he is free from the sale. When accepted you get the ebay fee credited back.
Should the cancellation be ignored it can be closed after 7 days by you.
Otherwise you can open an unpaid item case minimum 4 days after sale date and close it 4 days later.
You then get the fee back, buyer gets a strike on their account and you are then free to relist.
Suggest putting that buyer on your blocked bidders list.