Can I deliver an item I sold instead of ship it?

Nice to meet you, *****!
Would you be so kind to tell me more about that issue?
Have you already sold this item or just created it on eBay?

Ok, you mean you have delivered the goods in your city without the delivery company to the buyer correct?

If you deliver the item yourself or the buyer picks up the item from you, do not accept PayPal payments, in fact eBay tells you that.
Pickups should be paid for in cash, not through PayPal.
PayPal is designed for shipped deliveries, since you do not have proof of such a delivery the buyer can file an item not received claim through either eBay or PayPal, since you have no proof of delivery you will be forced to make a full refund, this is the way the system is designed and the reason why eBay states you should not accept PayPal payments for hand delivered or picked up items.
Had you followed the proper procedure you would have received payment in full upon delivery, no need to wait 21 days and no need to pay the PayPal fees for the transaction.
I understand new sellers cannot always know every rule in the eBay book, but at least now you know this one. Nearly all of us have gotten singed if not burned by rookie mistakes when starting out as eBay sellers so don't feel bad about this error, as problems go this is a very minor one, at least you got a sale and got paid, which is far better than the "live and learn" lessons experienced by many other new sellers, including me back in the day when I first started selling on eBay.

So in case if you will meet him and deliver this item by itself you will need to receive the payment in cash on hand, there is no other option because he will cancel the order online.

In any case, if he chose to get it shipped and paid online and you will deliver an item to him he will just claim it as he didn't receive it.
If when completing a purchase you see a message no services available, or the pay button is greyed out, it means that there is a problem with the postal code of origin or destination. To be able to complete the shipment you have to correct the postal codes.

To edit the postcode in your eBay account​

1. Access your eBay account.
2. In the section Order details, under the tab Send to, click Edit.
3. In the field City & Postal Code, check the following:

The postal code is correct and exists.
The format is correct.
There is only 1 space between the digits, for example SW9 9XX instead of SW9 9XX.
The postal code is all in capital letters SW9 9XX instead of sw9 pXX.
If you are shipping to islands for example Isle of Man, select United Kingdom - Isle of Man.
4 Enter the correct postcode, then click the blue button Save.
Do you see it?

Of course.
If possible please make a screenshot of that screen and send it to me.

Maybe you can make a screenshot and send it to me?

As I said before if he chose to pay with the card online it's better to let this do the shipment company.

Of course.
Is there anything else I can do for you today?