This article will show you how to make money selling gift cards on eBay. Do you ever wonder why you see gift cards listed on eBay for more money than their actual value? Read on to learn why this is a great deal for buyers and sellers.
Things You Will Need
- eBay Account
- PayPal Account
- Windows Live ID
Step 1First, if you have not registered for an eBay account, you will need to do so. Go to eBay.com, and register. This is a fast, easy step. You will also need a PayPal account in order to receive payments. Go to PayPal.com and register. Again, a fast, simple process. You will also need to sign up at bing.com. All of these only take a few minutes, and are well worth your time.
Step 2Next, you will need to acquire some gift cards. You may either simply go buy them at the store of your choice, or with the holidays coming up, you may receive some that you don't wish to use. Now you need to do a little research. Microsoft Bing Search (Formerly Live Search) has a cashback program. If you go to www.bing.com and do a search for say a Best Buy gift card, you will see a list of places with Best Buy gift cards for sale. At, or near the top you should see a link to eBay. Click this link and it will take you to eBay, and you will see a list of Best Buy gift cards. Now you will notice something a little strange. You will notice that a lot of the gift cards are for sale at a price that is higher than their value.
Step 3This is where the www.bing.com cashback comes into play. At times the cashback percentage for these is 25%. Therefore, that $450 Best Buy gift card that is listed for $500 is really a great deal! If you take 25% off of $500, that gives you $125 off the purchase price. (500 X 25% =125. 500-125=375.) That means that you are only paying $375 for a $450 gift card. By purchasing this gift card you are actually making money; $75 to be exact. ($450-$375=$75) This leads to a win-win situation for the seller and the buyer. The seller is being paid $500 for something that they only paid $450 for; $50 profit, and the buyer is getting the gift card at $75 below its actual value.
Step 4Now that you know the secret behind this madness, why not use it to your benefit. Granted, not everyone, including myself has $450 to spend on a gift card to sell. The principle is the same for lower amounts as well. For example, you could list a $100 gift card for $116, this would give your buyer an end price of $87. ($116 X 25%=$29; $116-$29=$87) Your buyer is saving $13 by purchasing this gift card from you, and you are making $16 on the sale. It's a win-win situation.
Step 5When you write your listing, it is best to put a subtitle telling your buyers to use Bing Search to get cashback. Also, in the description section of your listing, put instructions on how they get their cashback. The easier you make this to understand for your buyer, the more likely they are to buy from you.
Step 6You must list the gift card as a BIN (Buy it Now) listing, and your buyer must use PayPal in order for them to get their cashback. Also note that the buyer will pay your full price for the item, and that it can take up to 60 days, usually less for eBay, for their cashback to be awarded to them. This waiting period is in place in case there are any returns made. With most items on eBay having a shorter return period they should get their cashback faster.
This is a great way to have steady income from eBay. You can always buy and sell more gift cards. The more money that you earn from selling gift cards, the higher value gift cards that you can purchase to resell. Since the cashback is a percentage, the higher the value of the gift card the more money you can make by selling them.
Tips & Warnings
- You must list your item as a Buy It Now (BIN) listing, not an auction style listing.
- Take into account fees when listing any item on eBay. These include eBay listing and final value fees (FVF), and PayPal fees.
- Recently the cashback amount has been around 8%.
- The cashback amount can vary, so there may be times when it is not worth it to list items in this way. Check the cashback amount often.
- The highest value gift card that you can sell on eBay is $500.