How does automatic bidding work on an item with a reserve price?

Question

Say an itemâ€™s starting bid is $5000, and it has a reserve price.  A buyer decides heâ€™ll place an automatic bid for $5500, the most heâ€™s willing to pay.  Heâ€™s the first bidder. The reserve amount of $5300 was unknown to the buyer, but his automatic bid of $5500 met the reserve price.  What bid price will appear for the item?

woodland_gnome · Accepted Answer

If the (refreshed) Listing Page continues to say "Reserve not met" after you place your bid, it means your bid (including any hidden maximum) is lower than the reserve price and therefore cannot win that auction, so it is safe to move on (unlike simply being outbid, when a cancellation of the higher bid before the auction ends can make you the winner at the end and obligated to pay, so it is not safe to move on until the auction ends without you as the winner). Even if the seller lowers the rese...