I am a casual eBayer, both buying and selling. For most of my sales auctions I use a reasonable minimum starting price (usually between $50 and $100) and no reserve. My starting price is usually a bit above what I payed for the item, and I just hope that auction competition will drive it even higher. Many of the items go for above the starting price, some are sold exactly at that price, and a few don’t go at all. A couple of times just to experiment I listed the auction with a $1 starting price and no reserve. They all sold, none of them for a massive profit and a couple for actually well below what I paid for them.
So maybe I am missing something here, but what is the point of having an arbitrarily low starting price in an eBay auction? I don’t really see how it can result in a greater profit margin, and there is always the chance of losing significant money. Yet lots of people use them. Any insights?