How do I remove shipping for a paid item that will be picked up instead of shipping that is already

[bonjourami]

You cant remove the shipping fee, you would have to refund the buyer. But be aware you will have no tracking to prove delivery if the buyer picks the item up. Your best bet is to cancel the transaction using at buyers request, then relist it as local pick up only. He will receive a QR code from Ebay when he pays, you scan that on pick up to prove he did pick the item up.

[albertabrightalberta]

Although you can't remove the shipping fee, you do have options, neither of which will protect you unless you do as @bonjourami suggests; cancel and relist as local pickup. 

Consider whether this is what you want to do -- keeping in mind that without a scanned QR code, the buyer can claim non-receipt even for in-person pickup: 

• If the buyer hasn't paid yet, you can click to send an invoice and issue a credit of the shipping amount at the bottom of the invoice. The total amount due shown to the buyer will show the debit and the matching credit for shipping.
• If the buyer has paid, you can go to the order and issue a partial refund for the amount of the shipping.

[inhawaii]

Refund the buyer what they paid in shipping through ebay -OR-  whatever the buyer paid in shipping, give them a cash refund when they pick up the item in person.