Bidding on an item is entering into an explicit contract to purchase the item at that price and is legally binding. If the bidder places the bid and it is accepted by the web site, both parties must honor the terms of the sale. Of-course there are some legitimate cases where a bid retraction may be accepted. Click here for more information. A. Reserve price is the amount below which the seller does not have to sell the item.
Reserve price is used for several reasons.
A seller may not be sure of the market value of the item. A reserve price can be set to protect seller's investment. Some sellers set the reserve price to an amount near the value of the item, whereas the item is opened at a very low bid to attract bidders. Reserve price auctions are not available for Dutch auctions and reserve auctions are not eligible to be displayed in the Hot Items section. I have forgotten my Member password.