On Trade Me, a reserve price is a safety net for sellers, ensuring an item doesn't sell below a certain value they are willing to accept.
Understanding the Reserve Price
Based on information provided, the reserve price on Trade Me functions as follows:
- It's Optional: Sellers can choose whether or not to set a reserve price when listing an item.
- Seller-Defined: The seller is the one who sets the reserve amount.
- Minimum Threshold: The reserve price is an optional amount, which is higher or equal to the start price that's set by the seller. It represents the lowest price the seller is prepared to sell for.
How a Reserve Price Impacts Bidding
The presence of a reserve price directly affects when an item will sell:
- Required to Sell: An item won't sell until bids have met the reserve. This means if the auction ends and the highest bid is below the reserve, the seller is not obligated to sell the item to that bidder.
- Seller Protection: It prevents the seller from having to part with their item for less than they deem acceptable, especially if bidding doesn't reach expected levels.
Identifying When the Reserve is Met
Trade Me provides a visual indicator during the auction:
- 'Reserve Met' Flag: You will see a red 'reserve met' flag displayed on the listing once the current highest bid reaches or exceeds the seller's reserve price. This signal lets bidders know that the item is now guaranteed to sell to the highest bidder if no higher bids are placed.
In summary, the reserve price on Trade Me is a confidential minimum set by the seller. Bids must reach this amount for the item to sell, protecting the seller's desired value, and a clear flag indicates to buyers when this threshold has been achieved.
