Question
Just got this email on my address that is registered on the Australian site, (bear in mind that Ebay Australia currently charges a 3% fee for reserve auctions that fail to reach the reserve, as opposed to 1% on the Home/USA site).....
Title of email: Important eBay information about Reserve!
No more Reserves.
On Tuesday 10th August, 2004, eBay.com.au will be removing the ability to use Reserves for all categories except Cars, Motorcycles, Boats and Other Vehicles. The changes will start being implemented at 12:00:01am AEST, Tuesday 10th August, 2004.
Research has shown that sellers who don't use a Reserve price on their listings experience a 34% higher sell-through rate than those sellers using Reserve, so here's your chance to be more successful!*
Got a question about the changes? Take a look at our Frequently Asked Questions section.
Reserve Removal FAQs
Q: If I can't use a Reserve, how do I ensure I get the price I want for my item?
There are a number of ways you can price your item for sale on eBay. Many of our large sellers experience great results by listing their item at $1 and allowing the buyers to determine the final sales price. However, if you feel uncomfortable listing this way, set your starting price at the level you would have your Reserve price at.
Q: Why is eBay.com.au removing Reserves?
There is strong evidence that Reserves restrict the bidding activity on an item. eBay research has shown that sellers who don't use a Reserve on their listings experience a 34% higher sell-through rate than those sellers using Reserve.* This change is being implemented to help sellers be more successful selling on eBay.com.au.
Q: If I list an item on another eBay site (other than eBay.com.au), will I be able to use a Reserve?
Yes. You can continue to use Reserves on all other eBay sites except eBay.com.au and eBay.de.
Q: Why is Australia the only country removing Reserves?
This change is designed to help the small number of sellers in Australia who have previously used Reserves to be more successful. There is strong evidence that Reserves restrict the bidding activity on an item. eBay research has shown that sellers who don't use a Reserve on their listings experience a 34% higher sell-through rate than those sellers using Reserve.* This is a country specific launch and no other sites are involved at this stage.
Q: Did eBay.com.au consult the community before making this decision?
Yes. As always, eBay consulted its community members before making the decision to remove Reserves. Specifically, eBay held conference calls with buyers and sellers, held a special Voices session and reached out to numerous members through our boards and events. Overall, the feedback confirmed the benefits of removing Reserve prices and was instrumental in our final decision.
Q: Won't this change cause more sellers to end their listings early if they aren't achieving the price they want?
Sellers should only end a listing early for the following reasons:
* The item is no longer available for sale.
* There was an error in the starting price.
* There was an error in the listing.
* The item was lost or broken.
Please be assured that eBay investigates all reports regarding this policy and takes action as necessary. If you would like to report a violation of these policies to our Safe Harbour Team, you can do so here.
Q: Am I able to list my item at a set price and state a Reserve price in my listing?
No, this is against eBay's Listing Policy. Click here for more information about this policy. If you are concerned about selling your item for less than it's worth, you should set your start price at the minimum price you would be willing to accept.
Q: I use Turbo Lister to list my items for sale on eBay, will Reserves appear as an option?
As Turbo Lister is a tool that allows you to list on any eBay site, the Reserve price option will still be available within it. However, if you attempt to list an item with a Reserve price on eBay Australia using Turbo Lister, an error message will be returned to you when you upload your listings. We are currently working on the removal of the Reserve field for Australia in Turbo Lister and expect the change to occur in September, 2004. For future changes to Turbo Lister, please visit the Announcement Board.
Q: I have listings live on eBay.com.au with a Reserve, will these listings continue to have a Reserve when this change occurs?
Yes, any live listings on eBay.com.au that currently have a Reserve will remain the same until the listing ends. If you relist this item after Reserves are removed, you will not be able to use a Reserve, so please adjust your start price accordingly.
If you have any other questions regarding the removal of Reserves, please email Customer Support.
Visit the chatboards for advice from members on how to sell without a Reserve.
* eBay Australia Data, August 2003
Answer
It just keeps getting better and better doesn't it? I always LOVE how they have made these "improvements" because they have listened to the "community" well go visit the Booksellers board on eBay. They are screaming loud and clear and guess what? eBay could give a fig about the "community."
This has also been posted on the Booksellers board ... can the USA sellers be far behind on this one?
I can tell you it will leave eBay with nothing but carp to sell as who would want to risk putting anything of any real value up? All it takes is picking a lousy week to put your item up, and we all know that it happens, for your valuable item to get picked for a few dollars because that was the week the buyers just weren't there.
Oh yes they are so WISE at eBay! Hey Sellers!!!! SCREW YOU!!!! We're making it on the listing fees!!!!!
Answer
Dear Lord! What on earth could be the logic behind that? Of course more items that have no reserves sell--because they only need one bid to sell!
Accck!
Answer
The study into reserve prices that is quoted by Ebay USA and Sellathon as proof that reserves are detrimental, is also described in The Perfect Store by Adam Cohen (page 194). Importantly, the study that is quoted as proof that reserve auctions are detrimental to prices, used .... Pokemon Cards.
David Lucking-Reilly listed 50 pairs of Pokemon cards. He listed one of each pair with "a secret reserve price of 30 percent of its value and no minimum bid", and the other card from each pair was listed "with a minimum bid of 30% of its value and no reserve". 72% of the latter cards sold, and 52% of the reserve auctions sold, with the unreserved cards selling for an average of 62 cents more than the reserved cards. THIS is the research that is used to prove that reserve prices are inneffective and detrimental - piddling Pokemon cards which should not be listed with reserves anyway. A study into high end items such as Tiffany lamps may have some credibility, but I have seen two businesses bandying around the results of Pokemon card auctions as the seminal study into reserve prices.
For the record, I do not use reserves on my auctions at all, so this decision will not affect me in the least, however I do have an understanding of auctions and appreciate that reserves can be used effectively, particularly on high end items. The removal of reserves will discourage some sellers from listing high end and good quality items on Ebay. It will suit some buyers who do feel that reserve prices waste their time, but it may prove detrimental to the same buyers if they see a drop in the quality of goods available.
The FAQ counter suggestion (in the first post above) that "I ensure I get the price I want for my item" by listing my "item at $1 and allowing the buyers to determine the final sales price", is absolutely ludicrous. Whilst this does let the market determine the value in the truest auction sense (provided that Ebay does not crash), it DOES NOT ensure that the seller gets the price that they want for the item. It is a totally innappropriate and irresponsible answer to such a question, even though it may be a suitable marketing strategy in other circumstances.
I also think that if Ebay Australia is giving away reserve auctions when they are pulling in triple the fees that the Home/USA site is, that they are testing for outcry and Ebay USA will follow suit shortly after.
Kevin
Answer
I have always been somewhat confused (and irritated) by reserve auctions.
If you put up an item with a reserve of $100, that means you want at least $100 or you won't sell. If you list it with an opening bid of $100. and it's bought, you will pay fees based on the final selling price of $100. If the item does not meet the reserve, you have no FVF because the item didn't sell. If it meets the $100 reserve, you pay FVF based on the $100 selling price. So what's the point of a reserve?
Some sellers have pointed out that starting the item at a high price results in fewer bidders. I don't know how accurate that information is because presumably it's based on that particular seller's experience. However, what's so good about starting it at $1.00, generating many bids and not selling due to the reserve not being met?
I haven't bid on a reserve in a long time, but have bad memories of doing so. I was looking at some pretty high ticket items and was willing to pay a healthy sum for them, sometimes well over and above book value if I needed fill ins for my collections. Many times, my very high bid didn't meet reserve. It seemed to me that the seller was fishing for information on their own collections' worth and had no intention of selling the item. That turned me off and they immediately went on my "do not buy from" list.
As a buyer, I'd be happy if ebay got rid of reserve altogether.
Answer
I don't get it. Do they charge a fee for reserves like they do here? If so, why would they remove the potential to collect the fees for reserves? (If I remember the several articles I've read on this, eBay makes a good chunk of change off reserve fees)
A reserve is critical to all auction houses. A reserve is our protection as sellers.
UNLESS eBay is planning to raise fees again. Then if a AU seller wants $400 and can't use a reserve, maybe they'll be charged more for starting the item at that higher starting bid. UGH. Take away a right for us to protect our investments, then REALLY ding us for starting our prices higher...
Answer
It sounds to me like the gorilla's revenues are down.
Question is, are they really that stupid to think sellers will just run right out and list their better stuff with $1 unreserved in the middle of the summer slump with no categories to put them in?
When are those dolts ever going to get a clue?
Answer
Q: Why is eBay.com.au removing Reserves?
There is strong evidence that Reserves restrict the bidding activity on an item. eBay research has shown that sellers who don't use a Reserve on their listings experience a 34% higher sell-through rate than those sellers using Reserve.
Well heck YES the sell-through rate will be higher without a reserve because you may end up selling for less than you paid. If you have an item that you purchased for $500 which is worth $1500, see how many bids you get with an opening price of $500. I've tried it and it didn't work for me. A reserve allows one to cover their azz while at the same time setting a lower starting price to get the bids and interest rolling. I always disclosed my reserve in my description which worked well for me.
This change is being implemented to help sellers be more successful selling on eBay.com.au.
The only one who will be more successful is eBay because they rake in the FVF whether the seller loses money or not.
I suspect this policy will eventually hit the eBay U.S. site and then you can kiss goodbye the remaining higher end antiques and collectibles.
Blanche
Answer
This must be the eBay exec who decided to get rid of reserves. It's the same guy who thought up Item Specifics. LOL
http://s89853943.onlinehome.us/pics/ebayexec.jpg
This pic was posted on one of the eBay boards and I just had to snag it.
Blanche
Answer
Neil works for eBay??????????????