Auctions

[chrisco62]

could someone explain the reasoning behind placing a bid on an item that is below the reserve price, I know an auction has to start somewhere but just having some diffilculty understanding the proccess. This may seem like a stupid question to some people but I am fairly new to ebay and you thoughts would be very much appreciated.

Thankyou in advance

[digital*ghost]

The reserve price is not made known to bidders unless it is reached, and some people may bid a few times to try and reach the reserve, others will just bid what they are prepared to pay and if it doesn't meet the reserve, so be it. On auctions with a reserve (like your quad listing), if bids are placed that are under the reserve, the price will go up according to the bids placed unless someone meets or exceeds the reserve price, in which case the price will automatically jump to the reserve price.

[bsal6160]

Easy fix. List your item at the minimum price you are prepared to expect even if you only get one bid on it. Simple. Reserve price listings put off many buyers as the buyer now has to bid against the seller. IMO its almost the same as shill bidding.

[lyndal1838]

How does the bidder know what the reserve is?

A lot of bidders will not place a bid early in the auction...they wait till near the end and then place one bid...of they win that is great, if they don't win, too bad.   If there is a reserve on the item there is every chance that the one bid will not be enough so the item will not sell.

You are really better off starting the auction at the lowest price you are prepared to accept...in other words, everyone knows the reserve and can decide if they want to bid.

[thecatspjs]

Reserve auctions are only offered in limited categories, they are in no way comparable to shill bidding.

For higher price items they serve their purpose quite well IMO - it is really up to sellers in their particular markets to decide which format and pricing structure works best for them.

For those not sure about format, perhaps check out completed listings for similar makes and models and the prices achieved in particular formats.

[retailtherapist_8]

I cant help, I refuse to bid on items with a reserve it just irritates me, start an auction off at your lowest aceeptable price or just list a BIN price.

Good luck with your ebay adventure, it can be a lot of fun!!

[putney32]

reserves on ebay aust are only on high end items such as cars / boats / realestate etc.

so it is no different to a real live auction, where you go along to bid but do not know the vendors reserve until it sells or doesnt sell beause it didnt reach reserve and is passed in.

ebay aust did away with reserves on general merchandise years ago

[*crikey*mate*]

so really, what's the point?

Why not just start your auction off at the lowest price your willing to accept?

Why waste yours and everyone else's time by setting a fake starting price - is it just to tease people? A tool to suck people in get more people interested and hooked on bidding on the item?

What are the benefits of it?

[thecatspjs]

There are all types of auctions, reserve auctions are an everyday occurrence off ebay, so not sure why anyone would be fazed about those on ebay. 

It is just another seller tool that may or may not contribute to a successful sale.

I don't think it wastes anyone's time. Bidders choose to bid in this type of auction. If it is not appealing to some, then you can just stick to non-reserve auctions.

With this type of auction the bidder can bid, and know immediately if they have met the reserve or not and can move onto to bid on other items, and in a market such as vehicles this type of auction may one the factors that is attractive to a buyer.  

In this type of auction a seller might also use bidding activity as a bit of a gauge to what the market might be willing to pay, and in the car category can even lower their reserve during the listing (if a buyers bid is higher than a lowered reserve, it is automatically lowered to just beneath the reserve price).

I think a trading place that offers choice in selling format is a postive thing, as it may attract a wider range of buyers and gives a seller a little more choice in how they wish to sell their goods.