Seller, me, discovered an item was inoperable while packing it for buyer. Shipping label printed.

[gnewleaf]

How do I cancel entire transaction and void shipping label charge?  Thanks.

[ebooksdiva · Accepted solution]

You would need to click the drop down menu next to the item click cancel citing OUT OF STOCK you will receive a defect for that, but you have no other true option. 

How to cancel an order in Seller Hub or in My eBay Sold

1. In Seller Hub, go to Orders; or in My eBay, go to Sold.
2. Find the order you want to cancel, and from More actions, select Cancel order.
3. Choose a reason for the cancellation and then select Submit to finish.

Here's how to void a shipping label you printed on eBay:

1. Go to Manage shipping labels.
2. Find the item you'd like to void the shipping label for, then from the Actions column, select More Actions, and then select Void.
3. Choose your reason for voiding the label. If you want to, you can add a message for the buyer.
4. Select Void shipping label.

[monster-deals]

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@gnewleaf wrote:

How do I cancel entire transaction and void shipping label charge?  Thanks.

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Depending how much shipping you are spending it might be advisable to go ahead and ship because cancelling for OOS or broken item can really, really hurt.

[ebooksdiva]

I would, before canceling the order notify the buyer let them know what happened, the buyer may request to cancel, then you wouldn’t need to cancel for out of stock.