http://resolutioncenter.ebay.ca/
Be careful using this.
Since your buyer requested it and you are willing, there should be no problem using the "we have agreed" Mutual Cancellation.
BUT if the buyer has been belligerant or angry, you would be safer to use the "buyer has not paid" Unpaid Item Dispute.
With the Mutual Cancellation, the buyer can agree (fast) or ignore (slow but the MC still works) or refuse (and the seller is in trouble).
With the Mutual Cancellation both buyer and seller can leave feedback. The bidder can leave Detailed Seller Ratings. The seller gets his fees back.
If the buyer refuses, the seller does not get his fees, and cannot open an Unpaid Item Dispute. The transaction remains open. The item cannot safely be relisted. The bidder can leave FB and DSRs.
If the bidder is unfriendly, open the Unpaid Item dispute. This means he either pays and the transaction continues, or does not pay and the bidder gets a UID strike which makes it harder to continue buying on eBay. The seller gets his fees back. Neither can leave feedback.