I sold an item where free shipping is offered, however, the shipping costs exceed the cost of the item sold. Can I cancel the order and refund the buyer?
Yes, you can, but it will be considered a "defect" on your account, and the buyer can still leave feedback from the "awaiting feedback" link on the right side of the eBay summary.
If you want to cancel, maybe contact the buyer and explain why.
Use the reason "problem with buyers address", so you don't incur a defect.
I'm sure others will come along and tell you to proceed with the sale so you learn a lesson, but in reality, nobody can force you to complete a transaction just because there was an error in the listing.
Maybe if you do some due diligence prior to listing it will help you. It will only end up in tears if you cancel sales due to you not doing your homework
