I have the option for a “shipping discount” through my Marketing tab on
the seller hub. I’ve done it before and hasn’t resulted in much of a
sales lift.
Same thing happened to me once for an item shipped to Canada ... I'm not
sure what eBay does with the item once they receive it back, because it
states I won't get the item.
I primarily sell sports cards and this happens maybe 1-2 a month ...
usually to hide how much they paid to someone else in the house who may
open their mail!