Explain EBAY reserve please?

[jag5311]

I don't understand exactly what a reserve is on Ebay. Someone said they had their domain reach $100 bucks today, but it didn't reach his reserve. Are you allowed to pull your auction if your reserve isn't met?

thanks
bryan

 

[RON2]

http://pages.ebay.com/help/buy/buyer-reserve.html

 

[jag5311]

The one thing I can't figure out by reading the reserve info on ebay is

It costs a fee to use the reserve, but they make it sound like whatever you set the reserve at, that is the fee. Then if someone meets the reserve, it is added back to your account. So if i want a reserve of $500, then it will want to deduct $500 from my account. Is that correct?

thanks
bryan

 

[DomainPairs]

They charge a listing fee which is based on the start price, and a reserve fee which is a percentage of the reserve. If the item sells for more than the reserve they credit the reserve fee and charge a final value fee. If it doesn't you lose the reserve fee. The idea is that you get more bids if you start low. Some sellers start low without reserve and get a friend to bid the price up to their reserve thus avoiding the reserve fee. This is a breach of ebay rule and is called shill bidding.