Question about price setting – Beginner

First time seller on Amazon here. Preparing my first FBA shipment but a little bit confused about setting prices for my listings (mostly selling used dvds/games). When I scan the bar code using the Seller app, it states the lowest price is £11.24 for example, but when I click on the “list” icon, Amazon wants me to match a different price, namely £9.98. The lowest offer by another user is £9.09+2.15 postage, which works out at £11.24, but for some reason Amazon wants me to match the price with the second lowest seller, which is £9.98 + £1.26. (£11.24 in total).

Could someone please explain the logic behind this? If I set my price at 9.98, how much postage will a customer have to pay if they choose to buy from me? Just what am I competing here against in terms of price?

I’d be grateful if someone could explain this to me. Thanks