The Payment option "Pay on Pickup" is not available in the online Sell Your Item form directly. It is available in the free eBay listing tool Turbo Lister.
The only other way I know to turn the "Pay on Pickup" option is bulk edit the listing after you have it listed. To use bulk edit, you need to have at least two active listings. Bulk edit has the "Pay on Pickup" option in the Payment bulk edit option.
Once you have changed the listing to have "Pay on Pickup", then the option appears checked off in the Payment section in the online Sell Your Item form and is now a visible option checked off in the Add or Remove Options!!!
If you use Sell Similar to create a second listing from the now fixed "Pay on Pickup" listing, the "Pay on Pickup" option will stay.
You can also save a starter template with "Pay on Pickup" in the 10 saved starter templates available for the online Sell Your Item form from this "fixed" listing.
If you delete the "Pay on Pickup" option from the listing, then it is gone from the Add or Remove options in the Payment section and has to be put back using bulk edit.
Please note that using the "Pay on Pickup" option is not the same as the "Local Pickup" in a listing shipping options. "Pay on Pickup" is a payment option. If you use the local pickup option in shipping, then it makes sense to also use the Payment option "Pay on Pickup". This way no shipping charges or shipping FVFs can be charged.
A quirk with the shipping option "Local Pickup" is that it only shows for Flat Rate Shipping in a listing Domestic shipping setup. If you are using Calculated Shipping, you cannot setup Local Pickup in a listing domestic shipping. Strange, why not. It should be there in my opinion.
One other thing to know is that the eBay UnPaid Item Assistant will not work with listings with the payment option "Pay on Pickup". This was documented in a seller update in the past couple of years.
The above is what I know about "Pay on Pickup" payment option and "Local Pickup" shipping option. I figured this all out 3-4 years ago when I was using Local Pickup as an option.
I removed the "Pay on Pickup" option from my listings so I could use the UnPaid Item Assistant. I had maybe 4-5 local pickup purchases in 4 years so the option was not really needed.
