I'd like to sell a few cheap items with untracked postage

Am i likely to incur any penalty or downgrading if I sell small cheap items in an untracked envelope.

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I hope that you Understand, that if you go ahead and mail this way, You CANNOT Prove to 

eBay Customer Service, that you actually did Mail the item out, nor can you PROVE that 

Australia Post did Deliver to the stated Address. You have NO comeback through ebay.

 

Post then at your Peril. If someone "Claims" that they did not Receive their item which they 

Paid for, you will have to Refund them. I Send EVERYTHING with AP Tracking, the "Risk" to NOT DO THAT, can be quite Financially Devastating.  However, it is up to you.