1 Answer

What's a reserve price?

A reserve price is a price a seller can set when they create an auction-style listing. It's the minimum price they're willing to accept for an item. If the bidding doesn't reach this price, they aren't obligated to sell the item.

Sellers might use a reserve price because it allows them to set a low starting price to generate interest and bidding, but protects them from having to sell their item at a price that they feel is too low.

The reserve price is hidden from buyers, but some sellers include it in the item description or tell buyers who contact them and ask what the reserve price is. However, sellers aren't obligated to reveal their reserve price.

Until the reserve price has been met, the listing shows the message Reserve not met.

How bidding works for an item with a reserve price

When you bid on an item with a reserve price, if your maximum bid meets the reserve, it will automatically increase to meet that price.

Example: A seller lists an item with a starting bid of $1.00 and a reserve of $100.00. Bidder A bids $1.50. The current bid increases to $1.50 but the reserve isn't met. If nobody else places a bid, Bidder A does not win the item.

Bidder B places a maximum bid of $150.00. The current bid increases to $100.00 (the amount of the reserve) and the reserve is met. If nobody else places a bid, Bidder B wins the item at the price of $100.00.

Note: If a seller's reserve price isn't met, they might choose to offer the item to one of the bidders using a Second Chance Offer.

http://pages.ebay.com/help/buy/reserve-price.html