Why do sellers put reserves on the auctions? Why not just set an opening bid that would represent the amount of a “reserve”?
Sellers put a reserve on an item to protect themselves in case the bidding just doesn t materialize. They should put a reserve to cover their costs, with maybe a slight profit, and then let the bidding take care of the rest. I think that starting it at a low starting point with a reserve is a psychological move. Bidders are reluctant to start out at say $300. Sometimes buyers need to ease into those high numbers even though they will get there eventually. Another reason that it is good for a seller to have a reserve is if they have a valuable doll to sell, there is always the possibility of the auction site crashing (though this is greatly improving) while the auction is in place. Once it is back up, it may end on a day that may not get as good of traffic. Or, lets say that you list your item and it is really a slow week for sales for some reason (holidays etc), the seller just wants to protect themselves in case of any problems. I kinda chuckle, however, at the people who list a 5.00
