Paying for item on collection to avoid Paypal costs

I have sold an item on e-bay and the seller is suggesting she pay me cash on collection to avoid me paying Paypal costs. I have agreed to this as it sounds ideal. How do I update the item to prevent this?

Cash is the best option for sellers for items collected as you have no protection through PayPal.

Once they have paid, click on More options to the right of the item and 'mark as payment received' and 'despatched'.