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How do I cancel an Unpaid Item?

I sent an unpaid item request. I have heard from the buyer that the part ordered will not work. Now I want ot cancel the transaction.

 

eBay will not let me start the mutually agree to cancel process until the unpaid item process is finished. What junk!

 

How do I make my buyer happy and allow the item to be relisted without waiting for 10? days?

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