Yes definitely add a shipping cost. On a small item like that I would consider US postal service as it would be the cheapest method. Probably 3 or 4 dollars at most.
Also considering the item. Its a very nice plush toy. I loved them. Much nicer then the shrek dolls. I would use that as a motivator for bids or a sale on another item. The purchaser name and address will be also included on this plush toy that we are donating to toys for tots or something along that line. When you donate a toy to a kids charity they send you a thank you card or plaque. This can also be a motivator as they know their purchase would also give a donation to a needy child.
Another sales gimmick is to use the bottom pic to drive traffic to your ebay store. Include a small sales pitch and your ebay username under or above the picture.