November 2005 - eBay has issued the following fact sheet to aid new users:

Expand Buying and Selling Options with eBay's Best Offer and Second Chance Offer

WHAT IS A BEST OFFER?

Best Offer is a selling format on eBay that allows sellers to indicate they are willing to consider taking less for an item compared to their starting bid price. Once a buyer suggests a lower price, it can be accepted or rejected by the seller. Like a bid, a Best Offer is binding. For example, an eBay buyer wants to purchase a particular item listed on eBay, but feels it's priced higher than he or she feels it is worth or is willing to pay. Without going through the bidding process, the buyer may be able to obtain that item at a lower price if the Seller agrees to the buyer's Best Offer.

Information for Best Offer Sellers

• Best Offer is available at no charge for Sellers
• Sellers determine at the time they are creating their listing if they want to make Best Offer available to buyers
• Sellers must have a feedback rating of 10 or more (or be ID Verified) to consider placing a Best Offers option for buyers on listings.

• Best Offer gives you the chance to negotiate a price with the Seller, and there is no minimum price. However, a Seller may receive more than one offer and choose which, if any, offers to accept.
• Offers made by Buyers are binding -- just like a bid -- and are good for 48 hours.
• If a buyer wants to provide the Seller with more information about the offer he is making for a particular item, he can include a message to the Seller.

Disappointed you were outbid on the 1935 E.H. Scott all wave tube radio you wanted? You may get another opportunity to buy it! A Seller can make a Second Chance Offer to non-winning bidders when 1) the winning bidder does not pay the Seller, 2) the predetermined reserve price has not been met, or 3) if the Seller has duplicate items.

Information for Second Chance Offer Sellers and Buyers

• A seller can create a Second Chance Offer immediately after a listing ends for up to 60 days. The offer can be sent to Buyers in a 1, 3, 5 or 7 day duration.
• Creating a Second Chance Offer is free. Sellers pay only the Final Value Fee when the offer is accepted.
• A Buyer can be sure a Second Chance Offer she or he receives is legitimate by going to their My eBay page where a second chance offer will appear.