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How Discounted Gift Cards Can Make You Money
We all know discounted gift cards can save you money, but did you know they can also make you money? I will show you how I discovered this technique when I wrote the post “Buy Gift Cards at a Discount at These Online Discount Gift Card Websites.”
I enjoyed writing the post on saving money by buying discounted gift cards. I like finding new ways to save money and make extra cash from home. Extra cash can supplement a current income, be spent on extra goodies, or be put away for a rainy day.
I also enjoy finding new ways to make money from home that are fun and easy to implement. My gift card technique is just that. It helps to have some knowledge of eBay and/or Amazon selling practices. You’ll be using one or both websites to sell what you buy with your new discounted gift card(s). However, you could also sell what you buy on Craigslist or a Buy, Sell, Trade Facebook Group Page. This technique is called arbitrage. You will buy items at a lower price and sell them at a higher price. You’ll purchase products online or at a retail store and sell them profitably on any sites I listed above.
Gift Card Arbitrage Example
Here’s an example: Recently, I researched different websites where you can buy discounted gift cards online. I found a great deal for an Ann Taylor Loft gift card at Raise.com. It was a $396 gift card being sold for $324.72. That’s an 18% discount (at the time I’m writing this post, there’s a 25.1% discount for an Ann Taylor Loft gift card to be used in-store only)!
I was thinking of going to the Ann Taylor Loft outlet store (you don’t have to shop at outlet stores for this technique to work), choosing some items on sale, such as jewelry, clothes, or accessories, and listing them on eBay. I know from a family member’s experience selling Ann Taylor and Ann Taylor Loft items on eBay, that they sell reasonably well. The $71 you are ahead of purchasing the discounted gift card and buying items on sale should make you a nice profit on eBay. However, you might also find great deals on the company’s website online.
Do This First
Before you visit the company’s website, you’ll want to visit Rakuten.com first.
This is a must-have if you don’t have a Rakuten account yet! It’s free, and you can earn cash back just by starting your shopping experience on their website.
Not only will Rakuten give you cashback for starting your shopping experience from their website, but they also scour the internet for coupons and exclusive offers from participating merchants. You can then layer the coupons with the cashback for even more savings!
But it doesn’t stop there…get the Rakuten cashback extension for Google Chrome, which hangs out in your browser and does all the work for you. You will see the link in the footer menu under Tools & Services on the Rakuten website. This means you don’t have to start shopping from the Rakuten website. The button alerts you when cashback is available at participating merchants.
Promotion Codes are Your Friend
When I checked the Ann Taylor Loft website, they had a free shipping special if you purchased $125 or more. I could easily spend this much since my gift card was worth $396! In addition to Rakuten’s 2% cashback on this particular day for starting my shopping experience through them, there was also a 20% off $100 or more promotion code! Since we are spending $396, that would be an extra $79 off added to the $71 savings I would have from buying the discounted gift card!
In addition, I’m getting my items shipped for free, so I also save money on gas if I travel to the store (however, you do have to factor in taxes whether you’re buying online or offline, depending on your state). By the way, they had plenty of merchandise on sale, including regular, tall, petite sizes and maternity clothes. In addition, there was a clearance section with amazing deals like $60 sweaters marked down to $12.88.
If you could forget the arbitrage idea and stock up on next fall and winter’s wardrobes with this technique, you would be a savvy shopper!
In Summary
To summarize this technique, go back to my Buy Gift Cards at a Discount post and check out the discounted gift card websites listed there. Next, visit Rakuten.com and see if that merchant participates in the Rakuten cashback program. What coupons and promo codes are being offered for that store? Or, if you installed the Rakuten Cash Back Button (which I hope you did), you can go directly to the merchant’s website.
Rakuten will automatically tell you if cashback is being offered for that merchant. If it is, a visible button will activate the cashback on that website. Then, you click the Rakuten Cash Back Button again, and a list of promotion codes and discounts will appear. You want to search for any additional coupons or discounts you can find for that merchant. This will be in addition to the cashback. A gift card is like cash, so it won’t interfere with any promotional codes or coupons you use at the merchant’s store or website.
One More Thing…
Before you purchase the gift card (if you are buying it for arbitrage reasons), check out eBay.com and Amazon to make sure you can sell what you buy (if you’re going to sell on Craigslist or in a Yard Sale or Buy, Sell, Trade Facebook Group, test out a small amount of inventory first). On eBay.com, check out the completed auctions and the final sold prices. Amazon makes it a bit easier to determine the price of listed items. You don’t want a bunch of merchandise you can’t sell!
Once you have your gift card, find sale items at the merchant’s store or website. Look for items that you believe will offer you a profit after reselling them. If you buy at the merchant’s website, see if they have free shipping specials. If not, double-check the shipping price. You don’t want to eat into your profit with shipping charges! In addition, check for additional on-site discounts or specials. (Remember the 20% off of $100 at the Ann Taylor Loft website?)
After you do all of the above, you can buy, list, and sell your items! Hopefully, this technique will help you make some extra money from home. Rinse and repeat!
Editor’s Note: This post was originally published in 2012. It was completely revamped and updated for accuracy and comprehensiveness in 2019. Some affiliate links are included in this post.
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