I can't find a lot of information on it, but here is how I think it works. If you have sold the item in the listing with another item in your shop, they will show up as "frequently bought together" (even if it's only happened once, I imagine).
I really like this idea and I hope it will lead to greater sales. A lot of the items in my shop complement each other and this is a great way to get customers to drop them both in their carts with one click.
Here is a close-up.....
On the other hand, I have a listing in my shop that I have never sold before and the FBT prompt does not show up at the bottom of the screen, because it has never been bought together with any item. Instead, the old "related items in this shop" picture is there:
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