If you have a link to Add or Remove Options click on that and the Pick Up Only option should appear in a drop down box under Domestic Postage.
Otherwise click on Create Postage Policy and a new window will open - give the policy a name (anything you want such as 'Pick Up Policy') - and again from the drop down menu under Domestic Postage select Pick Up Only. Then save and complete your listing.
It's a good idea with pick up items to put your postcode or suburb in the title and in the listing mention when you'd like the item collected by - for example 'must be collected within 7 days of purchase' or whatever time frame suits you.
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