Ebayers -- When do you use Reserve Price?

[Luv2Roam]

Can anyone offer the plus and minuses for using Reserve price and how/why you list using this feature?

TIA

 

[kashkdz]

As a frequent ebay seller I personally don't use them. The purpose is to set the minimum price that you are willing to sell your item for. The buyer does not know this price, and thus bidders may bid up until the 'reserve is met'. If the reserve price is not met you will ses this next the the highest bid. Only when the reserve is met, is the seller obligated to complete the transaction; otherwise the seller does not have to sell the item. I've used reserve auctions before, and quite often had buyers ask me via email what the reserve price is. This way they can decide ahead of time if it is worth bidding on. My understanding of reserve price auctions is that it 'may' entice more people to bid should your starting price be too high; though again although the bid amount may be low to entice more bidding, the seller is not obligated to sell the item unless the reserve price is met. As a buyer, I don't bid on reserve price auctions, as I like to know beforehand, what is the minimum selling price. I typically use the starting price feature, in that I state the starting price (say, $19.99), and let the bidding start from there.

 

[disneysteve]

I agree with kashkdz. I don't use reserves as I think they are deceptive. A seller starts the bidding at $1.00 but has a reserve of $100. I'm not convinced it gets people to bid more.

I also don't like to bid on reserve auctions because I don't want to waste my time putting in a bid only to find out that I don't have a chance because the reserve is higher than my bid.

Just make the starting bid as low as you are comfortable with while still taking all your expenses into account.

 

[Luv2Roam]

What I looking at is this -- and if you would, tell me if it doesn't matter, or shouldn't be done:
IMO Ebay fees are high.

Just trying to save a buck or two on listing and selling. Maybe it all washes in the end and doesn't matter anyway.

Say I start the auction at a ridiculously low price. But in my description state the reserve is $XX.

Thoughts?

Thanks again. I appreciate your prompt responses.

 

[Luv2Roam]

Just an additional thought:
What is anyone's experience on yahoo?

I have sold a little on both auctions. Not much. I have always thought Yahoo was more user friendly anyway. And their fees more reasonable.

I have read reviews that stated even though Ebay gets more traffic, statistically sellers really were no better off at Ebay than Yahoo.

Your thoughts and comments on this?

 

[disneysteve]

Originally posted by Luv2Roam
Say I start the auction at a ridiculously low price. But in my description state the reserve is $XX.

This would serve no purpose and cost you the reserve price fee. Just start the bidding at whatever you would have used for your reserve price and save yourself the fee.

 

[kashkdz]

Originally posted by Luv2Roam
Just an additional thought:
What is anyone's experience on yahoo?

I have sold a little on both auctions. Not much. I have always thought Yahoo was more user friendly anyway. And their fees more reasonable.

I have read reviews that stated even though Ebay gets more traffic, statistically sellers really were no better off at Ebay than Yahoo.

Your thoughts and comments on this?

Originally posted by disneysteve
This would serve no purpose and cost you the reserve price fee. Just start the bidding at whatever you would have used for your reserve price and save yourself the fee.

And I agree with DisneySteve...I have seen people state what the reserve price is in their description, and yes it defeats the purpose. Also, as as buyer why would I bid on an item if the seller does not have to sell the item to me (since I didn't meet the reserve price) though I am the highest bidder. With the starting price, you know if you're the highest bidder you essentially won the item.

 

[mep319]

I've started listing some of my DH sports memoribilia and he had me set reserves. I think it is a flat rate of $2.40 and then you are refunded that amount if it meets the reserve. Now I've listed about 6 of his things and I've told him NO MORE reserves. About half of them sold and I've had to eat the other $7.50 plus I think you price is your price set it and be done w/ it....I have to agree that I don't like reserves and I won't be using them in the future!

 

[disneysteve]

Just to add some history...

I've been on Ebay since 1997 - an old-timer by Internet standards. Back then, there was no fee to use a reserve price. What a lot of folks did is listed an item with an outrageous reserve for the sole purpose of getting an informal appraisal on the item.

For example, if someone had a collectible widget and wanted to know how much it was worth, they invested 25 cents to list the item but did it with a $10,000 reserve. The seller had no intention of actually selling the item but just wanted to see how much people would bid for it. As Ebay caught on to that, they changed the fee structure to discourage folks from doing that.

 

[disneychrista]

Count me in as one who dislikes and doesn't use or bid reserves.

If you want $29 for something then start it at that don't start it at $9.99 with a $29 reserve. What's the point?

 

[DMRick]

I have seen people state what the reserve price is in

I personally don't like reserves. That said I have used them a couple of times LOL. I've used them when I know I wouldn't even get lookers at the high price I needed to get. In both instances, setting a much lower price got me lots of looks and helped make my reserve price. People bid against each other until the price got right up there. If someone asked what my reserve was, I had no problem telling them...after all my goal was to sell my item. You don't save on listing fees, since you are charged based on what your reserve is.

Your are charged an additional fee for having a reserve..although if you hit that reserve, you get that refunded. Many of the local auctions around here have reserves on items. Those fees are (in addition to listing fees)

$0.01 - $49.99 $1.00
$50.00 - $199.99 $2.00
$200.00 and up 1% of Reserve Price of reserve price (maximum fee of $100.00)

As far as Yahoo..I love the ease of putting up auctions. I like the cost, I like that I can set the tiem to end. I hate that there are no people to bid : (
I can run the same auctions at the same time (I have duplicates), and sell diddily on Yahoo. I have a large percent of deadbeats on Yahoo..very very few on eBay.

 

[Cindy B]

I have to say we also tried Yahoo as well. We attempted to buy a digital camera. First the seller, told us the buyers I told have one to sell. Then he said he would "acquire it within the week". Then the week became 10 days, plus two weeks to ship.

Due, to the "craziness" of this buyer, we got a refund from our credit card company and cancelled the sale.

The seller was in Orlando, and said he had "connections". My DH and I thought that he was probably doing something shady, or possibly stealing it.

Anyway, that was our first and last experience with Yahoo.