Buy It Now And Reserve Price

I guess I should have been more clear. When I make auctions it does not allow me to set a reserver price or a Buy it Now price. I was told I could not post Buy it Now until I have 10 actions, but I was wondering if that's 10 total or just seller actions.

Looks to me per the link PB attached that you either need 10 feedback's OR be ID verified. Then it goes on to say if you accept Paypal, you only need 5. Confusing to me. I didn't know there were stipulations like that, but I had already bought more then 10 items before I even wanted to sell anything.

Having said that, there are quite a few folks around here that will tell you to never use a reserve price. You automatically get ignored by probably at least 50% of the potential buyers when they see that in the listing. If you are really concerned about getting fair market value, you can always pull the listing early I guess. Not sure how morally acceptable this is, but I believe it to be an option. Downside of that is if you have 15 people watching your item, you can bet that there will be some last minute bidding. I would list one item with nothing except maybe a BIN, and see what happens. Preferably a lower dollar item if you're unsure.

We tried using reserves a long time ago. I think the 50% estimate is probably pretty accurate. We have found that we do a lot better without reserve prices. A while ago I was part of a discussion (I can't remember if it was here or on another forum) where the idea of posting the reserve price in the auction seemed to help. Overall, though, I believe in starting auctions very low and letting them run. The more bids an item gets, the more it will continue to get. I don't know why this is, but it is definitely true. Keep in mind that there are additional fees with a reserve also.

I would suggest that, if you have items that you know are more valuable, wait to put them on ebay until around September. This is the point where the Christmas shopping starts and you will see the best money for your item then.

I would suggest using the time from now until then in selling lower priced items and purchasing to build up your feedback. That way, you will be more prepared for the better season.

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If no reserve, do you see anything wrong with putting a reasonable starting bid?

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I believe that this is just as risky as no reserve, but I think your auctions should be no reserve with either $.01 or $.99 starting bid. Reason, the more bids there are on an item, the better. Again, you are relying on "auction fever" to a certain extent. I can tell you this, if I see a coin at $25 with one bid, and the same coin at $25 with 10 bids, I will always look at the one with more bids just to see if they are bidding on something that the seller may have missed. Even then, I think maybe I am missing something and immediately out comes the price books. I am speaking from experience buying mostly, but if I am going to sell a coin, it's no reserve with a very low starting price.

I have a feeling that the powersellers on this site will tell you the same thing. If not, I'll get a scolding right after someone posts and corrects my reasoning.

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I agree with tights, with a $.99 start you get more bids and will realize it's "true market value."

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The problem is I tried that and my coin ended up selling for HALF market value. Probably because my feedback score is so low. I ended up selling an NGC MS-67 FB merc dime for $66.

Let's talk about reserves...

I did a survey on my website through BraveNet last year. There were roughly 600 surveys filled out, 92% said as soon as they see "Reserve not met" they hit the back button.

You have a coin that you want $500 for, that doesn't sell, lets look at the fees...

Open the bidding at .01 with a $500 reserve...

Insertion fee $4.80
Reserve fee   $5.00
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Total         $9.80

Open the bidding at $500, no reserve...

Insertion fee $4.80
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Total         $4.80

So let's review, both scenarios accomplish the exact same thing, your coin won't be sold for under $500.

But, if you used a reserve, you've driven away roughly 90% of your buyers and you've just given Meg a $5 bonus for failing to find you a buyer.

Why people use reserves is beyond me, it's ebay's biggest scam. If you're afraid to start it low and let it run, just start the bidding in your comfort zone and keep some of your money. Meg doesn't need it, she's in her hot tub earning 20%.

Reserves are a huge money maker for ebay. They don't want reserve auctions to sell, and they usually don't. When they don't sell, they get to keep the fees, and the seller will usually relist it anyway, so they get even more money.

Notice all around the ebay site you'll see some kind of promo for every single listing feature such as "Use gallery and increase your sale price by 21%!" You will never see one about reserves.