I spoke to eBay and they were very matter of fact about this new shipping debacle. "You should offer a refund on the additional postage" was their solution.  I asked if they pay the refund, because they are holding onto the postage fees themselves, and they said no.   Some of my items sell for 99p and I am expected to offer £2.94 refund on them.  This new system is crazy and I have decided to stop selling after this next round of auctions.

Some of my customers know that the eBay system is terrible and are choosing "Collect in person" for the additional items that I am combining in the same package.  They are very good at marking as received when they get the parcel.

But this really is stupidity on the part of eBay.  Just to make money now you are allowed to sell "for free".