A Reserve auction is an auction where the item for sale may not be sold if the final bid is not high enough to meet what the seller expects. The seller "reserves" the right to accept or reject the highest bid, depending on what he perceives the value of the item to be. In these cases a set "reserve price" known to the auctioneer, but not necessarily to the bidders, may have been set in advance below which the item may not be sold.

A reserve auction is safer for the seller than a no-reserve auction as they are not required to accept a low bid. However this method of auctioning could potentially result in a lower final price if there is less interest is generated in the sale. Reserve auctions are basically allow the seller to test the market without having to commit to the sale, if he or she so chooses.