I collect coins, but I also collect art deco bookends. There is one seller that always sells with no reserve and starting at .99 and they always get good prices for their items. They deal in quality deco items and buyers know they are going to get what they pay for so they pay up to get the items they want. They do charge S&H at reasonable rates. The bottom line is that if you're selling quality it should work out well even if you charge for shipping or not. I know I always figure in the shipping when I make a bid so I don't see it as a big factor. But you may be correct about the free shipping listings getter favorite status with eBay. I don't use the Best Match or the Lowest Price for items I regularly am looking for like coins. I use Newly Listed search as a rule.
when I sell on ebay I always sell at the price I want plus ebay fees and paypal.if it sells fine if it don't fine.i don't sell coins very often though.
Consider this though: One of the best ways a seller can entice buyers to buy multiple items is through combined shipping discounts. Let's say you are trying to buy a bunch of half dollars, and seller A has 50 half dollars for sale at $10 each with free shipping. Seller B has 50 halves at $8 each plus $2 shipping, but he offers a combined shipping discount. Assuming the coins are similar quality, who are you going to buy from? People buy coins they didn't intend to buy because of combined shipping discounts. They think they're getting a deal so they want to make the most of it. As you say, I assume anyone offering free shipping has figured their shipping charge into the cost of the item, but there is no discount for multiple purchases.