I didn't experience that, but have only done one transaction for less than $10. I can see how it might scare people off if bidding on higher-priced items. My biggest gripe is not being able to list more than 1 in "quantity available" or do a BIN or a 1-day auction. I have an item right now that I could be selling several a day. Granted only for $5-10 but 2/day at $10 is $140 plus 14 FBs.