What is Reserve Price?

Many sellers have found having a low starting price encourages people to bid, but they want to protect themselves from selling an item for too low. This is when a reserve price is useful.
For example, you want to sell an item for at least $500, but you're worried that a starting bid price of $500 will discourage potential bidders from bidding. If you use a reserve price, you can list the item for sale with a starting price of $50, $75, $100, or any amount below the amount of your reserve price. Bidding will start at the lower price which you have define, but you won't be obliged to sell the item unless the bidding reaches at least $500 (reserve price you enter).