Using Reserve Pricing

     

You learned about reserve price auctions back in Chapter 1, "Reviewing eBay Basics." In a nutshell , in a reserve price auction the initial bid price you set isn't the lowest price you agree to accept. Your lowest acceptable price ”which is hidden from all bidders ”is called your reserve price. You use reserve pricing to get bidding started at an attractive initial price, while reserving the right not to sell unless the final price reaches the (higher) level you really want to get.

That might mean starting bidding at a penny, but setting a reserve price of $10 or so. Bidders will get excited about the one-cent starting price, and (hopefully) bid the price up to where you want it. Once the bidding reaches $10, you're home free. If the bidding doesn't get there, the auction closes without a winner and you're not out anything. (Except your listing fees, of course.)

The only problem with reserve price auctions is that you run a very real risk of scaring away some viable bidders. That's because many new or inexperienced eBay users are confused by the whole reserve price process, and when potential buyers are confused, they just don't bid. If you want to run that risk, fine; reserve auctions do let you get bidding started at a very attractive level, while protecting you if bids don't rise to the price you're looking for.

You activate reserve pricing on the Sell Your Item page. Just enter a value into the Reserve Price field, and this option will automatically be added into your auction.



Absolute Beginner's Guide to Launching an eBay Business
Absolute Beginners Guide to Launching an eBay Business
ISBN: 0789730588
EAN: 2147483647
Year: 2002
Pages: 167

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