DNIM, I was somewhat polite with you in my comments on this article that you posted: http://community.brickpicker.com/blog/4/entry-283-a-guide-to-shipping-carriers-its-a-drag-but-you-gotta-do-it/?st=20#commentsStart
Let me say it this way, you're not looking at the full picture. I really think you need to revisit what you're doing/talking about, especially when you post an article that people who don't know better read as definitive.
What we do with shipping is build in the highest domestic shipping cost (for which ever service we offer, we usually just say "economy" or "standard") into the price of the item, as well as the cost of packing material, boxes, and labels. I've compared doing this to offering domestic shipping as calculated, and there's little to no difference in sales. Something like this matters to us because we ship and sell a lot of things...trust me, if building in shipping into the cost of the item resulted in significantly fewer sales, we wouldn't do it. As I've said in many others posts here, we always list international shipping as calculated.
The reason for this is the final value fees on domestic items are discounted for top rated sellers (we pay 7.2% final value fees with an eBay store for LEGO items). However, the final value fees on shipping for domestic items are not discounted. With international shipping, as Betsy mentioned, your final value fees are calculated on your least expensive shipping option, meaning if your first shipping option was domestic free then you're not charged a final value fee on international shipping.
Another reason is that with shipping built into the item price, you get an automatic 5 Stars on the shipping and handling charge DSR. It's one less thing that the buyer can rate you on, which ultimately affects things like top rated and powerseller status.
eBay rewards sellers who offer low cost shipping options. The other thing they do is pretty clearly explain all of this on their website.
I'll also point out that your own recent thread is a really good example of why from eBay's perspective they charge a final value fee on shipping: http://community.brickpicker.com/topic/5205-example-of-why-there-should-be-shipping-limits-on-ebay/?hl=10179#entry150462 It's to discourage people from making those types of listings.
Frog, please add some useful comments.