If not used properly, a reserve price on your item can often result in the same problems as an excessively high opening bid. Buyers will often lose interest in an item if they place a bid and find it doesn't meet the reserve. Because they do not know the reserve price, they may assume the seller is simply asking too much for the item. They may then move on to similar items that they feel they have a more realistic chance of winning.

To prevent this from happening, you may want to list your item with "No Reserve". Items sold with "No Reserve" typically attract more buyer interest, as buyers know that they will actually win the item if they are the highest bidder. In addition, statistics show that items listed without a reserve usually sell for more than comparable items listed with a reserve.

To minimise potential downside risk, most savvy sellers will search completed listings for similar items to gauge historical pricing and potential returns before setting their opening bid. You can then set your minimum starting bid slightly below this price, with "No Reserve", and still get the benefit of quickly stimulating interest from buyers and jump-starting bid activity.