Reserve Price

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Definition of 'Reserve Price'

A reserve price is the minimum price that a seller is willing to accept for an item being auctioned. It is typically set by the seller before the auction begins, and it cannot be changed once the auction has started. If no bids are placed that meet or exceed the reserve price, the item will not be sold.

The reserve price is an important part of any auction, as it helps to ensure that the seller gets a fair price for their item. It also helps to prevent the item from being sold for a price that is too low.

There are a few different ways to set a reserve price. One way is to simply do some research and find out what similar items have sold for in the past. Another way is to use a reserve price calculator, which can help you to determine the best reserve price for your item based on its condition, rarity, and other factors.

Once you have set a reserve price, you will need to make sure that it is clearly communicated to potential bidders. This can be done by including the reserve price in the auction listing, or by providing it to bidders upon request.

If no bids are placed that meet or exceed the reserve price, the item will not be sold. However, the seller may choose to sell the item for a price that is below the reserve price. This is known as a "buy-it-now" price.

The reserve price is a valuable tool for sellers, as it helps to protect them from selling their items for too low of a price. However, it is important to remember that the reserve price is not always met, and the seller may not be able to sell their item at all.

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