Sell Things On eBay: eBay Fees - Reserve Auction Fees

eBay Fees: Reserve Auction Fees

What, exactly, is a "reserve" auction?

A reserve auction is specifically for the purpose of self-protection. It establishes a floor, or price below which you are not obligated to sell your merchandise. Are the ebay fees worth it? It depends on your situation. Let's say you're selling an item that cost you $50 and it sells on the retail market for $90. Obviously, you don't want to sell it for $10 - yet you would like to offer a low, low starting price to attract buyers. Perhaps starting your auction at $5 would bring buyers flocking, yet it's a gamble because you might be forced into selling it for that price or lose your good eBay reputation.

The answer is a reserve.

You can start the bidding at $5 - but with a $50 reserve, you don't have to sell unless the price reaches this level. Bidders will be informed that you have set a reserve, but they are not told the amount of that reserve - unless you tell them. Is there any reason to do so? Actually, experience and testing have shown me that posting your reserve can be wise. It avoids the frustration of a buyer bidding again and again - only to be told that your bid isn't high enough. I have often departed in disgust and others fell the same way.

As a buyer, if I know the reserve, I can make my decision accordingly.

Note, though, that testing - and only testing - will confirm if this is best for your auction. There is a reserve fee.

Scenario #1: auction reaches the level of your reserve price - your fee is refunded

Scenario #2: auction does not reach the level of your reserve price - your fee is not refunded

Reserve auction fees:

Reserve Price	Fee
$0.01 – $49.99	$1.00
$50.00 – $199.99	$2.00
$200.00 and up	1% of Reserve Price (up to $50)

Important to know about reserve auctions:

1. You cannot include a reserve on a Dutch auction (selling multiple items in the same listing)
2. You may lower your reserve price after you receive bids

Consider your actions carefully and you will be able to make a sound decision about the eBay fees involved in a reserve auction.