There is an old saying "there is no free lunch" and the same is true with free shipping. There is no free shipping. The only way any eBay seller can offer free shipping is to raise prices to not only include the shipping but also the increased final value fees. If they do not do this they can kiss their business good-bye. Let's take something really simple like a book. Too many sellers offer books for less than $3 (most are $1). Shipping for a standard book is $2.53, if you do not use delivery confirmation. If you do, and you better, then shipping is $2.96. There is absolutely no way a seller can sell a book for less than $3 and not lose money with free shipping.
Let's talk about how the customer gets the short end. Most sellers offer combined shipping. That goes away with free shipping. As an example let's use a book again. Suppose the book is priced at $3 plus shipping of $4 (currently eBay's maximum). With free shipping that same book is now $7. eBay's final value fee is based on the $7 so it is now .84 rather than .36 (based on 12% commission rate). Suppose a buyer decides to buy 2 books. With free shipping the cost to the buyer is $14 and eBay's fee is 1.68. Without free shipping and a combined shipping policy that charges $1 for each additional book the buyer would pay $6 plus $5 shipping for a total of $11 thus saving $3. Of course eBay's FVF would only be .72.
In the world of criminal conduct the rule is to follow the money. In the case of free shipping the money goes to eBay and the cost is paid by the buyer and the seller. Only eBay benefits. Now in all fairness I want eBay to make money but I would prefer they do above the line and not hide price increases. Why not simply base the final value fee on the total transaction price like PayPal does.
Free shipping may work on high priced items that have a very low shipping cost but it will still be the seller who pays and in many cases the buyer will pay more.
Here is my final point in order to keep this brief. eBay seems to want to be more like Amazon, although I have no idea why, since eBay has absolutely nothing to sell other than services to sellers. Third party sellers on Amazon are a small part of Amazon's revenue but more importantly, Amazon's free shipping option does not apply with third party seller purchases.
eBay if you read this you need to come to your senses and stop pushing free shipping. Educate our buyers on why free shipping is not to their benefit. If you have sellers abusing shipping charges deal with them individually - but be sure they are abusing it and that it is not unique to their products.
If anything I have written is wrong I would love to hear from someone regarding this post.