Either use a shipping provider option or enter my own shipping charges

1: Click on My Store on ShopFactory Central
2: Select Shipping charges in left column
3: Click on Use a provider
4: Scroll down to Free shipping and select. Rename it to "Pickup in store."
5: Save Settings

You can also enable any of the other supported shipping providers on this page for orders you actually have to ship out.

If you have entered your own shipping charges and don't want to use a supported shipping service, the approach is slightly different:

1: Click on My Store on ShopFactory Central
2: Select Shipping charges in left column
3: Select Enter My own shipping charges
4: Click on the small + button below the list of methods
5: Enter the name of the method, such as "Collect in Store" and click OK
6: Put a tick next to the method

7: Remove the tick from "Rest of the world" by clicking on it.
8: Accept when you are being asked if method applies to all your products and then click on Next.
9: Click on Finish

Save and preview shop. Publish your shop so that the changes are uploaded online.