Informative Understanding of Reserve/Buy-Back Auctions

A word about Reserve Auctions

'Net surfers and online auction goers are somewhat familiar with auctions and have seen invariably what is known as a ' reserve/minumum price' auction. A reserve price auction (R) is one in which the seller starts the bidding for a lot at a lower price than what they will actually accept. If this minimum bid is not met, the seller/auctioneer does not sell the item. Biders are often times frustrated because while it appears they are the high bidder for an item, they find out at the close of the auction that they did not meet the minimum acceptable bid.

Buy-Back /Reserve Auction

In an effort to alleviate this inconvenience for buyers, yet retain the reserve/minumum (R) option for sellers, you have the traditional Buy-Back Auction. It's that if the minimum bid is not met, the seller in effect purchases back the item, as in a real-world auction. Reserve/buyback auctions (they're the same) are charged an insertion fee on the price, see the fees , it's based on the ending price at the close of auction (starting price if no bids). For a buy-back auction, the computer will be used in behalf of the seller. For example, if a lot starts at $5.00 with a buy-back price (or reserve price) of $10.00 and a buyer bids $5.00, The computer will overbid the buyer by one increment ( $1.00 in this example ) on behalf of the seller. This has two main advantages for the buyer:

What The Buy-Back Auction Isn't

The buy-back auction is NOT a 'ringer'. Buy-back does NOT 'shill' bids. Buy-back auctions are NOT used as a tool in any way to manipulate online auctions. These buy-back auctions are the conventional way auction business have been run since inception.

What Buy-Back Auctions Are

Buy-back auctions are a purely advantageous system for both buyers and sellers. Sellers have buy-back intiate in their behalf till the reasonable reserve price has been achieved. Buyerswill know exactly where they stand in the bidding of an item. Buy-back auctions makes it possible for a single bidder to win a reserve auction (R) which would otherwise be impossible without buy-backs.

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