The reason to list things for a low price is to get people to buy from you even if you lose money. This forms a bound and a percentage will go on to be regular buyers if you do it right. Someone spending $0.99 with you today can spend thousands next month.

It has got hard to do with so many restrictions but when I sold before I sold a lot of items starting at $0.99 some I lost money some I broke even a few I made a profit overall I broke even on them of course that meant all the work packaging them up going to the post office was for free but what I got was free advertising.

There is also a very big downside, which is why I want do it any more, people who get things cheap tend to complain more than people who paid a good but fair price for an item