posted on March 16, 2003 04:57:36 AM new
I'm asking this at AW because the seller I came across uses AW auction management services. Maybe he or she is here and can set me straight.
It was a completed auction that had an opening bid of less than $5.00 and a final winning bid of $14.95 with those shiny, red letters saying "Reserve Met".
My question is why you would bother with a reserve for such a low-dollar amount? I looked at the seller's current auctions and that seems to be his/her technique. The sell-through rate does not look high to me, so I'm guessing they are eating some of those reserve fees.
Again, I must ask why risk losing reserve fees on top of listing fees for such a piddling amount? Why not put two similar items together and start them at $9.99 and let it rip? Or, if your experience is that the item goes to $14.95, why not start it there?
I'm just curious. It's really none of my beeswax, but I'd really like to know the rationale.
posted on March 16, 2003 07:59:34 AM new
If the item is in a crowded catagory a very low opening can help bring in bids and interest. The reserve keeps you from losing money. This is the same rational for use of reserves on high ticket items and it works on low ticket as well. It's all about bringing in interest without giving away the farm.
posted on March 16, 2003 08:36:55 AM new
I think it is ridiculous to put a reserve on anything less than $25.00. If it is a crowded area, I am sure there are other sellers offering a $15.00 item with no reserve. The sellers that offer a reserve for such a low price item are afraid of loosing a dime on anything and taking a risk. In my years on ebay I see these sellers come and go. I don't see them offering a $15 a year from now with a reserve. They will learn they are spending more in reserve fees on the items that don't sell than loosing a $1.00 here and there.
posted on March 16, 2003 09:06:04 AM new
Actually reserves under $24.99 are only 50 cents now, so maybe they decided to see if they could spark some interest with a very low opening bid and still make what they needed...
posted on March 16, 2003 09:23:13 AM new
I'm curious as to why people find it neccesary to rip and predict impending doom on other sellers. Obviously the seller in quesion doesn't have a problem with what they are doing and must be at least somewhat successful or they would not be doing it. If it works for them, why must others complain about or mock their method?
Shops - that sounds more like complete confusion rather than an established method
posted on March 16, 2003 09:34:31 AM new
You know Twelvepole, you may be right. They could be experimenting to see how it would go now that the fee is 50 cents. That makes sense. Anything to get eyeballs looking at your ads. Can't sell it if they won't even look at it.
I don't think I'll copy this particular strategy, but if it works for them, that's great. I wish them success.
posted on March 16, 2003 03:20:24 PM newShops - that sounds more like complete confusion rather than an established method
I am sure it was. It was a fairly new seller and he had done it with a few of his auctions. I was so surprised when I first saw it. I thought ebay was out of whack again.
