It just means you pay the exact amount. I will use which ever shipping method you prefer. Usually if the bids get high enough on certain items I will offer free shipping.
Well I edited most of my auctions and made them free shipping but this one wont let me edit or update because it's ending soon but I will do FREE shipping on this one as well. I'm still pretty new here and it took me a few days to figure out that free shipping is the way to go.