A reserve price is the minimum price a seller is willing to accept for an item. If the bidding doesn't reach this price, they aren't obligated to sell the item.
Sellers might use a reserve price because it allows them to set a low starting price to generate interest and bidding, but protects them from having to sell their item at a price that they feel is too low. For example, a seller might list an item with a starting bid of $1,000 while setting a reserve price of $5,000. This attracts initial bidders with the low starting price while ensuring the seller doesn't have to sell below their minimum acceptable amount.
Reserve prices are hidden to bidders. This confidentiality is maintained throughout the auction process and even after the auction concludes, ensuring fairness and protecting the seller's interests.
If a reserve has been met, bidders will see “Reserve Met” next to the item price. If the auction ends without any bids meeting the reserve price, the seller isn't obligated to sell the item. However, they may choose to offer the item to the highest bidder at their last bid price, creating an opportunity for post-auction negotiation.