I relisted it as $3 with best offer and that worked. I was initially going to relist it at $2 with $10 postage but eBay didn't allow that.

Presumably they don't think that Australia Post isn't the biggest ripoff on the planet or that sellers should always foot the bill or charge ridiculous BIN prices (including postage) for old video tapes, or whatever makes them think that posting a 700 gram article from Melbourne to Melbourne or Melbourne to Scotland should cost exactly $7.00.