eBay Reserve Price, why use it?

[MansGame]

I'm just curious, why would you set a Reserve Price on your auction when you can just start the auction at the minimum price you need/want? Is the fee structure different? Is there a benefit I'm not aware of when you list this way? Just curious because part of me feels like it detours people from bidding or it throws up a red flag. I could be TOTALLY wrong, which is why I'm just asking the question.

 

[ronniedp23]

Inexperience? They may not know that the reserve has a stigma on eBay that it does not have in real world auctions (actual live in person auction houses).

It may also allow them to accept a lower selling price than the reserve. Vs. Starting it at the higher bid and risking driving bidders away. (Caveat I am not sure if this an eBay option, but I know in an auction house it is an option).

It may allow them to protect an item while getting a feel for the market.

Also it gives protection by allowing you to safely list an item with a starting bid of .99 and not worrying that you may be forced to sell an item for less than the "50" or whatever price you may need.

I realize that to ebayers reserves seem ridiculous, because the reserve is so often either at, or well beyond the high end of an item's eBay market value. But I think properly used its a valuable tool, and if it wasn't stigmatized as it currently is fewer people would employ shilling.

Just my thoughts on the matter.


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[MansGame]

Inexperience? They may not know that the reserve has a stigma on eBay that it does not have in real world auctions (actual live in person auction houses).

It may also allow them to accept a lower selling price than the reserve. Vs. Starting it at the higher bid and risking driving bidders away. (Caveat I am not sure if this an eBay option, but I know in an auction house it is an option).

It may allow them to protect an item while getting a feel for the market.

Also it gives protection by allowing you to safely list an item with a starting bid of .99 and not worrying that you may be forced to sell an item for less than the "50" or whatever price you may need.

I realize that to ebayers reserves seem ridiculous, because the reserve is so often either at, or well beyond the high end of an item's eBay market value. But I think properly used its a valuable tool, and if it wasn't stigmatized as it currently is fewer people would employ shilling.

Just my thoughts on the matter.


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Great post. I think it would be interesting to set the reserve for like $1mm or something stupid, just to see where the high bid comes in at... that's what would happen I guess.

 

[SilverandBlack]

I think most people that use reserves have unrealistic expectations of what the item is worth. They either dont do the homework or think they have some priceless artifact.

 

[CatdaddysCards]

I think most people that use reserves have unrealistic expectations of what the item is worth. They either dont do the homework or think they have some priceless artifact.

This is the most common use, IMO.


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Need Moustakas, Hosmer and patches.

 

[CollectorsCorner]

All I know is I don't bid if I see a reserve

 

[MansGame]

All I know is I don't bid if I see a reserve

+1

 

[predatorkj]

Seen a few friends use it as a mark at their buy in price. That way, even if they don't make money, they certainly don't lose any. But like others have said, it's commonly used and set way over any realistic price the item would normally sell at in an auction.

 

[ronniedp23]

Seen a few friends use it as a mark at their buy in price. That way, even if they don't make money, they certainly don't lose any. But like others have said, it's commonly used and set way over any realistic price the item would normally sell at in an auction.

This is how it should be used. Protect an investment. But eBay's paranoia means they lose bids that way.

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