I disagree.
First explain to your buyer clearly how shipping was stated. Mention that before a buyer confirms their bid, eBay makes them agree:
"You are agreeing to a contract -- You will enter into a legally binding contract to purchase the item from the seller. You are responsible for reading the full item listing, including the seller's instructions and accepted payment methods. Seller assumes all responsibility for listing this item."
Then explain that you offered to cancel the transaction because you just want peace and feared for your feedback -- well basically how you explained it. Then claim (whether or not true) that you only make a $1 markup on the item, you undercharge on shipping and packing already due to eBay's pressure on sellers, and if you lowered it more you'd lose money on the isale. Then by their response, this will at least tell you if they are a serious buyer who's just being stingy or else someone who bid to harass.
Before waiting for them to answer, immediately secretly file a complaint with eBay that they tried to extort free shipping. If they respond with feedback extortion, you can report that again. When they incriminate themselves a lot in email, eBay tends to remove the feedback when you submit the copies as the feedback removal reason.
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