You can mark an order as shipped from your PayPal account if you have created the label for it outside of the PayPal Shipping Center. Orders cannot be removed, archived, or marked as shipped in the PayPal Shipping Center at this time.
For PayPal Business Accounts
When you select Mark as shipped, the order will update in the PayPal Shipping Center. If you do not see it update right away, check back later as it may take some time before it appears as shipped.
For Personal PayPal Accounts
Click Activity on your Dashboard and scroll to the transaction.
Open the transaction and click Add tracking info.
Select Shipped from the drop-down menu, then add the tracking number and Carrier.