Either is a possibility, sure. Note that the Shipping Label Created status shows that they did buy the postage for the item, but where it is at this moment is unclear. The label could have an illegible barcode on it that scanners can't read, but it's a bit unlikely; a carrier can always key the number in manually, if it comes to that.
Ask the seller for an update on the status. If no response, and you're beyond the latest estimated delivery date already, file the Item Not Received report.
