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Gift Card Reselling Markets
Gift card reselling is one of the best ways to generate legitimate and lucrative spend on credit cards. Of course the reason the spend is legitimate is because gift card reselling is a business. When you first get started you might be looking to simply breakeven on the cards you sell so you can keep the points, but as you spend more time, grabbing a profit is nice too.
I have recently started selling more cards on Raise as a bulk seller. Since I am doing a decent volume, I was able to negotiate a lower commission rate which opens up more opportunities and more profit. Previously I had been selling most of my cards to a couple of different companies. I still work with them, but have been turning to Raise for most of my sales.
Selling on Raise has definitely made it easier for me to make a profit, but there is a learning curve. When selling directly to companies, they set the rate and that’s it. Raise on the other hand is a fluid marketplace and prices change/fluctuate often.
Learning the Market & Increasing Pricing
About a month ago gift cards of a certain brand were on sale for 20% off. I had never sold this brand on Raise before, so I entered the market pricing pretty low in order to sell the cards quickly. At that points prices were falling quickly since the market was flooded with new cards from this sale. Thankfully this brand sells FAST!
In total I sold 5 rounds of these cards as I was able to get inventory. Here is how it went and how I made more profit during each round of sales:
- Within a couple of hours my first batch of $100 cards sold for 88.9% of face value. That didn’t leave me much profit, but I was happy to know that the cards sold quickly.
- With the knowledge that the cards were selling quickly, I lowered the discount and sold the next batch of cards for 89.5% of face value. Squeezing a few more pennies out of the deal.
- Thankfully there was ample supply of these cards locally so I bought more and priced slightly above market rate. It took a couple of days, but my next batch sold for 90.9% of face value.
- Since I know felt comfortable that these cards sell quickly, I opted to purchase more cards and list the next set at 94.9% of face value. They all sold within a few days.
- Finally, I went on my vacation to the Bahamas and Mexico leaving some cards not listed. When I got back I noticed that the market had sucked up almost all of the cards. I was now able to sell my cards for 96.9% of face value. I have sold about half of my remaining cards at that price and expect the others to go within the next couple of days.
Looking at the Math
- Let’s look at the difference in the math, because it is pretty substantial. At first, I was selling $100 cards for $88.90 before fees paid to Raise. I was about breaking even.
- My final batch is selling for $96.90 or a full $8 more per card compared to the beginning. That is a significant change.
I have no regrets here since I was new to market with this brand and wanted to get a feel for how quickly the cards sell. With that said, I plan to be even more observant in the future on new brands, since it is clear that prices often recover quickly. This particular brand hasn’t been on sale again, so I don’t expect the market to be flooded with more cards. If it ever does go back on sale, I’ll probably hold back while people sell at a lower price.
Sometimes I miss the old days of selling all of my cards to companies, but Raise isn’t too bad. It is a bit more work tracking prices, etc. but I am already doing that with my Amazon business and thus it isn’t a bother. In the end the profit margins are much better and as I get to know the markets for more brands, I expect my profits to improve even more.
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