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Stacking eBay Bucks Deals with Gift Card Discounts
Yesterday I wrote about a number of gift card deals on eBay. Among them were discounted cards for Toys R Us, Babies R Us, Hyatt, TGI Friday’s and a few other merchants. At the time I mentioned how I was only going to be purchasing the Toys R Us cards and holding off on the others. (The Toys R Us cards did sell out as I had predicted.)
The other deals are marginal at best and don’t leave much room to profit. I asserted yesterday that in the past we have seen eBay Bucks offers come around shortly after gift card deals. Thankfully that is exactly what happened. Look what was in my inbox this morning:
An Extra 6%
This means that I will get an extra 6% (8% vs. 2%) on purchases over $150. So now lets see how this affects a couple of the gift card deals from yesterday.
TGI Friday’s $50 for $40
eBay is selling $50 TGI Friday’s cards for $40 with a limit of 5. If I buy 5 cards the math works out like this:
- Cost of Cards: $200
- eBay Bucks earned: $16
- 1.1% portal cashback: $2.20
- Final cost: $181.80
- Discount off face: 27.28%
Now here are the current resale rates:
I don’t expect GiftCardZen’s 80% rate to hold, but instead think that all cards will be down to 75% soon. Lets figure out the math both ways.
- Sell for $200 and profit $18.20
- Sell for $187.50 and profit $5.70
Since I believe the 75% scenario to be the most likely, the 4X eBay Bucks promo just took a marginal deal and made it a lot more attractive.
Hyatt $200 Gift Cards for $175
You can also currently purchase a $200 Hyatt gift card for $175 with a limit of 2. Here is the math:
- Cost of cards $350
- eBay Bucks: $28
- 1.1% portal: $3.85
- Final cost: $318.15
- Discount off face: 20.47%
Now here are the resale rates:
As you can see, you should be able to sell the cards back at 80% of face value. That would amount to a $1.85 profit. Not a lot, but the eBay Bucks offer just took a unprofitable deal and made it into something more attractive.
Note: You may have postage costs to mail in the cards to a reseller. Keep those in mind when factoring in your overall costs.
Other Gift Card Deals
- Buy a $50 Sephora eGift card & get a $10 bonus – Limit 2
- $50 Aeropostale eGift card for $40 – Limit 4
- $100 Babies R Us gift card for $90 – Limit 2
Why Purchase for Such Low Profits
While the decision as to whether or purchase or not isn’t easy, I think deals like these are good, especially if you are a bulk seller. Not only are you able to rack up spending on your cards (or burn eBay gift cards you got at a discount), but you have merchandise to sell. The more cards you sell to a reseller, the more power you have when trying to negotiate rates, etc.
Of course this is also decent for meeting minimum spending requirements. You can drive to a store and purchase a $500 card and then drive to Walmart to liquidate it, or in this case, spend $550 and earn a $7.55 profit without leaving your house. Oh and of course you can always use these gift cards at the merchants for a decent discount as well.
How to Tell How Many Cards Are Left
Finally, if you are holding out on purchasing, you want to be able to tell how many cards are left. My thanks to Doctor of Credit for showing me this simple and easy way.
To find out how many cards are left, go to a deal page and enter a quantity. If the quantity you have entered is higher than the number of cards left, then you get the following message:
If there are enough total cards left, then you will get the following message:
In this case I started at 2,000 and worked my way down until I discovered that there were only 942 of these cards left. By getting the “lower number” message on 943 and then seeing it change on 942, I know that 942 is the quantity remaining! Simple and easy!
My strategy going forward is to monitor eBay gift card deals and hold off until they get close to selling out. This will give me the best opportunity to maximize eBay Bucks promotions, which can turn an unprofitable deal into one that makes money.
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