As a long time seller on ebay I can tell you I have seen the table tilted against the seller time and time again. Here is another example:
Recently a couple of buyers have bought items, realized they bought it by mistake after receiving the itme, and I had free shipping offered. Now as you know as sellers we are pressured or 'urged' by ebay to offer free shipping not only 'for the better buyer experience' but because ebay also gouges you on shipping fees.
For ebay these shipping fees are a great profit center to up the bottom line because unlike the seller, who has to supply packing materials and time, ebay puts in nothing and no doubt also gets a discount on shipping or a referral fee from the carriers. And/or they take it out of our pockets as a 'fee on shipping purchase'. It costs them nothing to offer shipping, its a total pass through and the carriers love the business. Everyone wins except those making the market place in the first place.
So what happens when you get a return for free shipping? Ebay has titled the table on returns. You can 1) refuse 2)refund and let buyer keep item 3) offer the buyer a partial refund and keep the item or 4) pay for the return shipping and refund the total. the minute a case is opened, your paypal count is deducted the selling amount (and I sell deducted because ebay will find against you) There is no - offer a partial refund and buyer returns item. Ebay removes that option and you can't offer a partial return and pay yourself for the return shipping. Why? Because ebay doesn't offer it, even though it is an obvious choice. They don't care, they don't have to. They are polite on calls, but behind the politeness is an FU.
So unlike anyone who shops locally and wants to return an item - whether its our mistake or a broken product, we pay for our gas and time both ways. On ebay, that is not the case.
I have had two returns, one admitted that he bought the item and no longer wanted it, I sent him a message saying send it back and I'll refund the purchase price minus shipping to you ($2 for 1st class shipping0, and another buyer who was smarter - claimed the item was 'not as described'. In this case - he bought the wrong part, the item (brinkman igniter - in my ebay store). In my discussions with buyer I asked him about the gas to the store and back if bought locally - no reply. I asked him how he would describe the igniter - the item is fully described in title, part number, UPC,and includes pictures. He buys a universal starter instead of the specific part for his grill because its cheaper. now on a $10 item, how much margin is there when you ship for free and get gouged for shipping for the buyer's admitted mistake?
Both times, buyer admits mistake, both file cases, both times ebay says - sellers fault. I called ebay to discuss this issue and they agreed with me on every point, but found in the buyer's favor and just said (remarkably honestly) - 'thats the cost of doing business on ebay'. And I am sure you can supply your own story of buyers buying something, using it, then saying 'not as described' and returning it whent they are done with it - and why not - when it costs them nothing. Even better when the item comes back used.
So, what to do? You could start with no returns - but the buyers will just claim 'not as described' and you are back in the same boat.
You could just cut your selling price to exclude shipping but keep a competitive price, and then you can at least contest it, but 'not as described' will get you in the same boat. Once its not as described, its to bad for you. In my discussion with ebay on the igntier example, I said the description is complete, the pictures show what it is, part, upc, and the description on the package is in the title. How could I have described it better? There was no response from the 'helpful' ebay associate.
Finally, start charging restocking fees equal to your intial postage, or some recoverable portion thereof to cushion the blow.
Bottom line - ebay doesn't care - they don't have to.
In aother post I used global shipping and had to jump through about 20 email responses and finally got seller protection before that case resolved in my favor on an item pitney bowes or their agents damaged. But if you read the forums, pitney bowes gouges international sellers so most items I have in global shipping no longer sell. You maybe protected in case of loss, but with the cost, you probably will be priced outof the market.
So free shipping - maybe you get a sale, but maybe your magins are so low (and let's not forget the paypal fees) that its no longer worth doing business.
