What is the purpose of setting a low starting price
- Thread starter bayborn
- Start date
Maybe they just want to see how high it can go without being forced to sell if the bids stopped at the low end? *shrug*
I still don't get it, lol I watched an auction from start to finish, 6 days, the starting bid at 0.99 with a buy it now for 1200.00. The ending bid was 725.00 but yes you guessed it, the reserve wasn't met. But when I read through the listing they actually stated that their reserve price was $1000.00, lol So why not just start the auction at that price, lol. I'm not an ebay seller so I don't know the reason behind this type of auction but I guess that there is one 
I guess however the seller chooses to list an item depends on the value of the item being sold, and how much they are willing to pay to list it, since sellers are charged more for higher starting prices.
Here's the page that lists fees for sellers:
http://pages.ebay.com/help/sell/fees.html
Hope this helps!
Here's the page that lists fees for sellers:
http://pages.ebay.com/help/sell/fees.html
Hope this helps!
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If I see an auction with a reserve price I just hit the 'back to search results' button. I don't have time to play games. If you know the price you want then just do a BIN. urgh.
I guess however the seller chooses to list an item depends on the value of the item being sold, and how much they are willing to pay to list it, since sellers are charged more for higher starting prices.
Here's the page that lists fees for sellers:
http://pages.ebay.com/help/sell/fees.html
Hope this helps!
Thanks!!! This helps a lot. Since I'm not a ebay seller (just a buyer) I did not know that the higher the price the more you are charged. While I've learned something here tonight, glad that the forum is here to answer my questions. I'm so appreciative.
Yes! Me too.
I usually sort my search by BIN and if I don't see anything I like, I'll go the regular auction route. Like if I find a purse I want and it's $850 BIN, and I'm happy to pay that, then I'll press BIN, but don't yank my chain with letting me think I'm going to be getting something for $400 when you won't accept anything less than $700.
I don't get it either, OP.
When it goes un-bought (if that's a word), does the seller have to pay a relisting fee? Doesn't seem to make very good business sense.
That's not really correct for a couple of reasons.I guess however the seller chooses to list an item depends on the value of the item being sold, and how much they are willing to pay to list it, since sellers are charged more for higher starting prices.
Here's the page that lists fees for sellers:
http://pages.ebay.com/help/sell/fees.html
Hope this helps!
For a long time, ebay's been giving free listings for auctions, regardless of the starting price. It's actually stated in the link you posted:
Basic fees
What you get for free
- Insertion fees for your first 50 or 100 listings per calendar month, depending on listing format and category, are free (exclusions apply). Learn more about monthly free-insertion-fee listings.
So if the seller wanted a minimum of $1000 as she disclosed in the listing, it wouldn't have cost her anything to list and start the price at $1000.
But instead, she added a reserve to her "free" listing, thereby costing her $10 for the reserve. (The reserve fee is 1% of the reserve price, in this case, $10.)
IMO, it makes absolutely no sense!
Reserve price
Add a minimum price that must be met for your item to sell.
Reserve price
Fee
$0.01$199.99
$2
$200 or more
1% of reserve price
Maximum charge of $50
However, when a seller has a reserve, the fee is based on the amount of the reserve price so the seller really isn't saving anything. IMO and that of a lot of buyers, having reserve listings costs sellers customers because so many potential buyers hit the "back" button.
It's just one of many tactics. In the search results, if you see a low opening price or low current price, it draws in the views. A seller may figure if they get you to click the auction with a low price visible you'll see how nice it is, and bid regardless of the existing reserve. Also when searching if buyers see an item has 47 bids or whatever (that is often the case with a very low starting bid, high activity) they might think, 'oh this must be a hot item', and look for themselves. Whereas the item with an opening bid of $1000 won't get as many initial interested bidders looking at it at all. Everyone wants a deal. So many low-baller buyers out there. Every single time I have a listing set that is just a minimum opening bid set and no 'best offer' - I always get at least 2 or 3 buyers writing me asking "what's the lowest you would take?" Ummm.. it's not a best offer DUH lol!.. the min. is the opening bid. So trying to put the appearance of a low price might work for some sellers, I don't know.
Sellers use this "get them in the door" tactic as an advertisement for their item, and perhaps don't really care if it doesn't immediately sell, if it doesn't reach their reserve price.
To each his or her own, if something doesn't sell I may try another selling method.. sometimes it works. Although I personally never use a reserve, I don't like them as a buyer myself. And there is a listing fee (no final fee if unsold.) But I can see why some sellers might want to use one to protect the price they want to achieve. And as long as eBay offers them it's their prerogative I suppose. HTH!
Sellers use this "get them in the door" tactic as an advertisement for their item, and perhaps don't really care if it doesn't immediately sell, if it doesn't reach their reserve price.
To each his or her own, if something doesn't sell I may try another selling method.. sometimes it works.
Although I personally never use a reserve, I don't like them as a buyer myself. And there is a listing fee (no final fee if unsold.) But I can see why some sellers might want to use one to protect the price they want to achieve. And as long as eBay offers them it's their prerogative I suppose. HTH!
I've never really gotten the reserve price thing myself. I pretty much always hit the back button.
it's just one of many tactics. In the search results, if you see a low opening price or low current price, it draws in the views. A seller may figure if they get you to click the auction with a low price visible you'll see how nice it is, and bid regardless of the existing reserve. Also when searching if buyers see an item has 47 bids or whatever (that is often the case with a very low starting bid, high activity) they might think, 'oh this must be a hot item', and look for themselves. Whereas the item with an opening bid of $1000 won't get as many initial interested bidders looking at it at all. Everyone wants a deal. So many low-baller buyers out there. Every single time i have a listing set that is just a minimum opening bid set and no 'best offer' - i always get at least 2 or 3 buyers writing me asking "what's the lowest you would take?" ummm.. It's not a best offer duh lol!.. The min. Is the opening bid. So trying to put the appearance of a low price might work for some sellers, i don't know.
Sellers use this "get them in the door" tactic as an advertisement for their item, and perhaps don't really care if it doesn't immediately sell, if it doesn't reach their reserve price.
To each his or her own, if something doesn't sell i may try another selling method.. Sometimes it works.
+1
Yep! Reserve auctions are just a big waste of time for me. Put a BIN on it or best offer, so at least I know what you are looking to get out of it. Usually, the reserve is just something stupid.
As a seller, I never see the point of reserve price and never used it since it adds a fee to the listing.
Sometimes if the seller is new, Ebay will not let them set a higher starting price. It is easy to set a reserve if you start a bid at $0.99 because let's say your shoes sale for way less than what you anticipated, you are not obligated to sale. I just can't stand when you report fakes to ebay, they do not take them down.I still don't get it, lol I watched an auction from start to finish, 6 days, the starting bid at 0.99 with a buy it now for 1200.00. The ending bid was 725.00 but yes you guessed it, the reserve wasn't met. But when I read through the listing they actually stated that their reserve price was $1000.00, lol So why not just start the auction at that price, lol. I'm not an ebay seller so I don't know the reason behind this type of auction but I guess that there is one