# Reserve price

### ℹ️ What is Reserve price?

A **reserve price** is the minimum price you are willing to accept for an auction item.\
If bidding does not reach this price, the item will not be sold, even if there are bids.

If the highest bid is below the reserve price, the auction has no winner.

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### 🛠️ Set up Reserve price

1. Open the app > click **Auctions** > create a new auction or open an existing auction
2. In **Advanced settings** section, tick to **Reserve price** checkbox 

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3. Tick on **Show reserve price on front store** checkbox (optional)  > enter the reserve price amount in the field.&#x20;

There are 2 ways to place the buy out price:

* &#x20;**Fixed**: you place a price you want. For example: 500$
* **Percentage**: the reserve price will be calculated based on the  product price. For example: 80%

4. Click **Save** to update the changes

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### ✅ How the Reserve Price Works

* You set a **Reserve price** when creating the auction
* The auction runs and customers place bids
* When the auction ends:
  * If the highest bid **meets or exceeds** the reserve price → winner is selected
  * If the highest bid is **below** the reserve price → no winner

#### Example

**Auction settings**

* Starting price: **$50**
* Reserve price: **$200**

**Scenario 1: Reserve met**

* Highest bid: **$220**

✅ Result:

* Auction has a winner
* Winner completes checkout at **$220**

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**Scenario 2: Reserve not met**

* Highest bid: **$150**

❌ Result:

* No winner is selected
* No order is created