I did some tinkering last night and found that out too and if you sell to a Canadian they will use the lower of the US domestic or of the Canadian shipping.
Now that I have vented out my frustrations, my resolve is to start an action plan.
First and foremost I will not be changing my shipping fees, up or down. I have capped a lot of my shipping to fit into a price point. The $3.60 200gram lettermail for example has and will be $3.95 for a long time, despite the fact that when I factor in all the extra costs associated with shipping that one item, it really costs me about $4.30 (not factoring in the 11% FVF). If I do factor in the 11% FVF, then that's an extra 47 cents in eBay's pocket (crazy money for one item but anyway!). So, what I plan to do is up the cost of my items by about a dollar...heck I might even do more than that (and should considering that I am already losing big time on the currency exchange). I am also going to take a good look at lumping smaller ticket items together. The ultimate goal though, is to get out of the eBay business (Susan lucky you!). Life is much too short to live with the aggravation of eBay. When things you once loved are no longer loving you back, you move on right?
The biggest losers in this situation are going to be the buyers though. I think most of us have already pushed our profit margins way down to appease the eBay powers that be but this final deepening blow cannot be absorbed by most of us and prices overall are going to go up.
I also feel that ultimately eBay will lose too. Sellers of unique items (the ones that bring buyers here in the first place) are the smaller sellers and more and more of them are going to leave. So while ebay`s financial growth may look great starting out, it`s eventually going to drop again. And then what are they going to do next year to try and top this year's increase? Of course we all know the answer to that one. I think the answer for most of us here is to start looking at other selling venues if we haven't already done so. Even if we choose to stay on eBay, it's clear where the future of eBay sellers is heading and has been for a long time now.
In the present, I do have one question though that I hope to find an answer for soon. Will they refund the FVF if a refund is given for shipping? I have lots of buyers that pay on the spot without ever asking for a combined invoice and always wind up refunding them. I may have to consider blocking checkout unless an invoice is sent directly by me and that is IF and only IF that option is still around.