What is the reserve price on eBay? (full guide)
Are you new to online selling and not sure which options to use or ignore? For example, should you use eBay’s reserve price option? Well, a lot of people want to know the same thing because they aren’t quite sure what it means.
Luckily, in this article, I’ll explain and discuss eBay’s floor price options and all that’s involved. So read on to learn more about this option and learn more below!
What is eBay’s 2022 floor price?
A reserve price is an option you can add to your list that shows the lowest price you’re willing to sell your item for in 2022. This price may be shown or hidden from buyers during the auction if their bid is too low to meet this price.
If you want to learn more about eBay reserve prices and other helpful facts and tips, keep reading the article below!
What is the reserve price for an eBay auction?
Reserve price is a hidden option that contains the lowest price you are willing to sell your item for.
However, sometimes eBay may disclose this price in your item description, and some sellers may be willing to disclose it to reassure buyers and eliminate the guessing game.
Also, the feature has been around since eBay’s inception, but users are using it less and less quickly. However, it is still an option for some auctions.
What happens when the reserve price is not reached?
When the reserve price is not reached, sellers are not obligated to sell their item and their reserve price increase fee will be refunded.
On the other hand, if the reserve price is not reached, the seller may decide to lower its starting price to obtain a higher bid.
If this happens, the buyer is not obligated to purchase the item and the seller will not receive a refund for not making the sale.
How do I add reserve prices to new or existing listings?
To create a new listing with a reserve price, select this option when creating an auction. This option can be seen in the sales details section or the pricing section.
However, if you’ve published a listing and it doesn’t take much action, you can add a reserve price to it, provided there’s more than 12 hours left on the listing.
Follow the steps below to add a new floor price:
- Find your listing on your profile or Seller Central
- After that, select “Modify” from more actions
- Next, in Pricing Details or Business Tools, enter your floor price
- Finally click confirm
Is it better to use a high starting price in an eBay auction?
There is no straight answer to this question because everyone is different and likes to sell differently.
However, one thing everyone has in common is that you don’t want to sell your items for too low a price and miss out on your profits.
So let’s take a look at the pros and cons of both options and see which one might be the best for you.
It may be good to choose to start the auction with a higher starting bid, as you will always get at least the minimum amount for the item you want.
The only problem with this approach is that potential buyers may avoid your listing entirely due to the perceived high starting price, and will find a cheaper listing instead.
However, choosing to use the reserve price option can help avoid this problem.
This is because when you set a floor price, buyers cannot see it.
Also, if you set a reserve price of $30, but the auction price is $10, potential buyers will be able to bid lower, resulting in more buyers.
Until the reserve price is reached, buyers will see a notification that the seller’s reserve price has not been reached, and they will not be able to purchase the item, but can raise their bid.
Alternatively, sellers can lower their reserve price and negotiate a new price with the buyer.
The last thing to consider before choosing which way you want to go is that every time you use the floor price option, you will be charged $2.00, which can add up quickly.
However, if you choose to start your bid at a high price, you will not be charged. This is something to consider when choosing a method.
To learn more, you can also read our posts on eBay UPCs, eBay’s Global Shipping Program, and eBay Insertion Fees.
in conclusion
eBay reserve prices are set by sellers and are invisible to buyers most of the time. However, they can be if the seller wants to. Likewise, buyers can see them if eBay adds them to the item description.
Also, even though this feature has been around since the beginning of eBay and isn’t used very often, you can still use this option for some auctions if you want.
