What does a “seller's reserve” signify in auction terminology?

A "seller's reserve" in auction terminology refers to a minimum price that the seller agrees to accept for an item being auctioned. This concept ensures that the seller is not obligated to sell the item for less than a certain amount, protecting their financial interests. During the auction, if the bidding does not reach this established reserve price, the item may not be sold.

This practice allows sellers to maintain a degree of control and assurance over the sale of their goods and can influence bidding strategies. Bidders need to be aware that if their bids fall short of the reserve, the item may still remain unsold, even if they are the highest bidder. Understanding the seller's reserve is crucial for both bidders and sellers, as it directly impacts the auction process and outcomes.