(last updated on 5/31/2005)
When listing an item, the seller can set a Reserve Price. The reserve price is the lowest price at which a seller is willing to sell an item. The reserve price is kept secret from the bidders. If bidding does not meet or exceed the seller's reserve price, the seller is not obligated to sell the item and the bidder is not obligated to buy the item. A seller will typically specify a reserve price if he is unwilling to sell the item for less than the amount of the reserve price.
Bidders can bid lower than the Reserve Price, but the bidder will not be obligated to buy the item until bidding meets or exceeds the Reserve Price. A Seller is also not obligated to sell the item unless bidding meets the Reserve Price. The auction starts at the Starting Bid price. When a bidder's maximum bid is equal to or greater than the reserve price, AutoBid will post a bid that meets the reserve price for the item.
There is no point in setting the Reserve Price to the same amount as the Starting Bid, and we do not allow this. Since the bidders cannot bid less than the Starting Bid, setting the Reserve Price equal to the Starting Bid would be redundant.
During an auction, the item listing screen will show the words 'Reserve Met' next to the current bid if the seller's reserve price has been met. If the seller's reserve price has not been met, the words 'Reserve Not Met' show up next to the current bid. If the auction has no reserve price, the words 'No Reserve' show up next to the current bid.