Relists, either automatic or manual count towards the total of items you can list without incurring listing fees.
If you have selected automatic relists but your listing does not seem to have been relisted you can relist it yourself manually.
Be careful though. Automatic relists do not always take effect immediately.
I recently relisted an item which had not been automatically relisted. The automatic relisting then activated, resulting in a duplicate listing.
Fortunately, I was able to delete one listing before someone bought both listings. I only had one item!
