Reserve Price Versus Start Price Bidding Confidence

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E-Bay is an auction site! this may seem obvious but as someone who attends "real" auctions this is a point missed by many members. If you have items people want they will sell, if nobody wants your item it will not sell whatever the price.

Now to the point of this guide, why start an auction with a high start bid then have a hidden reserve price, this practice annoys me and I am sure a lot of other people as well. Remember I said it was an auction site in the above situation what usually happens is someone bids say £100 and the dreaded Reserve Not Met comes up, and often the "auction" ends at that point until the seller has to lower his reserve price. Then people tend to think he/she is desperate to sell, and wait for the inevitable relist at a much lower price.

Be honest with yourself as to the value of your item and do one of the following.

One

Start your item at the price you are willing to accept with NO reserve, if someone wants it they will bid at that price and will be pleased when they are top bidder, and who knows two people might want it and start a bidding war.

Two

Start your item at £0.99 with a reserve price you are willing to accept, this may seem the same as starting at £100 but it is not as many people myself included have bid on high value items that I did not really need just to see if I could grab a bargain! The other advantage of this method is that items like this are usually bid on early and one bid attracts another and you end up with lots of different bidders who often stay to the end of the auction.

Three

This last one is by far the most "exciting" start at £0.99 with NO reserve, as I said in method 2 this attracts the grab a bargain brigade and when bidders see that bidder A has won the item for £0.99 they will bid £1.20 and before you know it your item is zooming up as more and more bidders join in. The only disadvantage of this is that the marketplace decides the value of your treasured item. But remember it is an auction.

Four

Buy It Now, this is really only good if the item is new or you put a realistic price on the item. I have bought quite a few BIN items that have been cleverly priced at just under the average auction price for similar items, thus the seller has got his money in a very short time often less than an hour on E-Bay.

With regard to item 4 remember you can do an advanced search for completed items similar to the one you are selling this can give you an idea if it is actually worth putting your item on in the first place if your value is higher than the average realised.

Finally remember that E-Bay charge for listings by the start price so you can save money, only a few pence but it all adds up.

 

 

 

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