What is the purpose of setting a low starting price

bayborn

Member
Dec 30, 2011
566
427
Why have a reserve price that is sooo much higher than your starting bid? Most of the ebay auctions that I see like this "end" without selling because the reserve price hasn't been met. I hope someone here can "enlighten" me, lol TIA
 
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ladybaby78

Member
Feb 13, 2010
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NYC
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*
 

bunnyr

100jellybeans
Jul 17, 2012
2,268
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Low starting auction is suppose to get people to want to bid and this is exactly how to drive up the final price. It works many times.
 

bayborn

Member
Dec 30, 2011
566
427
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 :thinking:
 

iheartlv27

New LV Collector
May 23, 2013
109
2
GA, U.S.
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! :smile:
 
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vinbenphon1

Member
May 2, 2013
9,325
9,276
Western Australia
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.
 

bayborn

Member
Dec 30, 2011
566
427
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! :smile:
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.
 

V0N1B2

Armchair Supermodel
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Jul 10, 2009
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It's my user name
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.
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.
 

BeenBurned

Coach, Dooney, Uggs
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Feb 25, 2007
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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! :smile:
That's not really correct for a couple of reasons.

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



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.
 

lshcat

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Mar 31, 2010
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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. :smile: 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. :smile: HTH!
 

bunnyr

100jellybeans
Jul 17, 2012
2,268
23
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. :smile: 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. :smile: hth!

+1
 

caannie

Happily Retired
O.G.
Mar 28, 2006
2,485
768
Montgomery, AL
I've never really gotten the reserve price thing myself. I pretty much always hit the back button.
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.
 

DIAMONDS11180

Member
Dec 28, 2013
45
0
CORAL GABLES, FLORIDA
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 :thinking:
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.
 
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