What is a Reserve Auction?
by sir_snipes_alot

A reserve auction is an auction listing where the seller has paid an additional listing fee to set a 'reserve price' for their auction item - this is a price that the seller has determined to be the lowest price that they are willing to sell the item for.

While the starting bid price on the item may be much lower, unless the reserve price is met, the item will not be sold. eBay rules state that if a reserve auction price is not met - then neither the seller or the buyer have any further obligation regarding the auction item.

Bidding on a reserve item often raises certain questions regarding the outcome of a bid. Here are the key points to remember when bidding on an auction item.

• The reserve price is set by the seller - consider this price the seller's proxy bid, which in order to win the auction must be met or exceeded.
  
  

• When entering multiple bids in an attempt to 'find' the reserve - your bid amount will not change until you meet or exceed the reserve amount, as you can not bid against yourself.
  
  

• When your bid meets the seller's 'reserve price' - your bid will immediately jump to the amount of the seller's reserve. Sometimes this is a very large jump.
  
  

• When your bid exceeds the seller's 'reserve price' - your bid amount will jump to the level of the seller's reserve, and any remaining proxy amount will be held back and used only to fight off any future bids buy other buyers.
  
  

• When the reserve price is met - the red letters stating 'reserve not met' will change to blue letters stating 'reserve price met'.
  
  

Sir Snipes recommends that all bidders, regardless of bidding style, consider the reserve price as an additional proxy bid - in this case a proxy bid entered by the seller.

Sir Snipes also recommends that you review the auction listing very carefully, sometimes sellers will disclose the 'reserve price' in their auction listings, while others may not. You can always e-mail the seller to ask what the reserve price is - I have done this many, many, many times - and have had all but one seller respond telling me their reserve price.

Sir Snipes Tip: When the reserve price is not listed - just e-mail the seller and ask.