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If you can get the guy to send you the money first it's likely not a scam. Take a picture of the phone with the shipping package clearly showing it's not broken at time of shipping (also have him pay for insurance if he wants it). Use paypal if you want, they don't charge anything to transfer money (not sure where you got that information from but I do it all the time - it's $0.50 if it's under $100 and free over). Once you receive the money it's yours and he can only get it back if he files a claim through paypal (that's why you have the pictures). Shouldn't be any risk this way.
Personally I would deal locally as $35 isn't worth my time.
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