Understanding reserve prices in auctions 

When bidding in an auction, you may come across items with a "reserve price". This is the minimum price set by the seller that must be met for the item to be sold. If the bid does not reach this price, the auction will end without a winner and the item will not be sold.

What does this mean for buyers?

• If an item has a reserve price, your bid must meet or exceed the reserve price for your bid to be successful.

• If the highest bid at the end of the auction is below the reserve price, the seller is under no obligation to sell the item.

• You may see notifications indicating whether the reserve price has been met.

What does this mean for sellers?

• Setting a reserve price ensures that your item does not sell for less than you are willing to accept.

• If bids do not reach the reserve price, you can choose to relist the item or adjust your pricing strategy.

• Note that a high reserve price can discourage bidders, so it is important to set a competitive amount.

Should you use a reserve price?

A reserve price can be helpful if you want to protect the value of your item. However, setting it too high can reduce buyer interest. If you want to encourage more bidding activity, consider starting with a lower reserve and letting the market determine the final price.

Understanding how reserve prices work can help both buyers and sellers make informed decisions and have a smooth auction experience. Happy bidding!