You said a small, inexpensive item. My friend ran into something similar several years ago. My advice was to go slow and controlled.
The scam is built on building trust. He's good for small amounts. Soon you trust him, and he orders more. When it gets big enough, he cuts and runs.
Right now, you're making money. You're not going to lose at this stage. So, if you want, go for it. He'll respond with another bigger order, cash up front. You're still good and you're making money.
Then he'll try for a COD order, I'll bet it's low enough not to be a risk. It's the one after that that you'll have to make a decision about.
Work out your strategy and risk factor now.

My friend got burned at the hundred dollar mark, scammer was impatient. However, my friend had made three very good deals and still profited. (He's a hard core Dead Head collector.)

Guess what my paternal Granddad did for a living?