Buyer has paid but is unable to collect

[Anonymous]

I recently sold a vintage piece of furniture which is an old sewing machine. The terms were pick up only but the buyer is unable to collect due to it being too far away and they can't afford to freight it. We are communicating well and I have agreed to refund but have also decided to not re advertise at the moment as I might keep the machine . How do I best handle this refund and sale reversal? I know I can refund via PayPal which is how she paid but I am a bit unsure of what to do in the my ebay sold section. I am not a business and any advice would be much appreciated.