Reserve prices explained: when to use one, and where to set it

The reserve price is the most debated setting in every seller’s toolkit. Used well, it protects you from selling below your floor. Used badly, it scares away the bidders who would have carried your auction past it. Here is how to think about it.

What a reserve actually does

A reserve is a hidden minimum. Bidders see that a reserve exists and whether it has been met — but never the number itself. If bidding ends below the reserve, the item simply does not sell, and you can relist it.

When a reserve makes sense

• The item has a real, checkable market value (a graded card, a branded watch, a car).
• You genuinely cannot accept less than a specific number.
• You want the excitement of a low starting price without the risk.

When to skip it

For items under a hundred dollars or so, reserves usually cost more than they protect: “reserve not met” is the point where casual bidders leave. A “no reserve” badge, on the other hand, is one of the strongest bid magnets on the platform — our no-reserve auctions attract measurably more watchers and earlier first bids.

The middle path many experienced sellers take: start the auction at the lowest price you would truly accept, and use no reserve at all. Simple, transparent, and it converts.