Perhaps if you let the buyer know that if he agrees to a mutual cancellation that he will NOT receive a strike and in doing so you will receive your fees back. That way neither of you are out any money and you can relist the item. If you both agree to mutual cancellation you will get your fees back, per ebay "f the buyer confirms this mutual agreement, the buyer will not receive an Unpaid Item strike and the seller will receive a Final Value Fee credit."

I hope it works out for you.

Renee