Sell Gift Cards on eBay
From GiftCardNexus
Selling unwanted gift card on the open market is filled with perils and risks, because gift cards are treated just like cash. Scammers will not hesitate to employ dubious techniques to defraud and steal gift cards. It is prudent to be vigilant and aware of the risks and rewards before reselling gift cards. While this article is focused primarily on selling unwanted gift cards on eBay, due to its large customer base, the concepts in this article can be used on other online marketplaces. The first part of the article covers tips on how to get the best possible resale value for unwanted gift cards. This article assumes the reader has basic knowledge and prior experience with selling items on eBay.
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[edit] Research
First step is to research the resale value of unwanted gift cards. GiftCardNexus.com offers a comprehensive list of resale values for hundreds of different gift card brands. By knowing the average resale value, sellers can set a proper Buy It Now price. Furthermore, check the lowest resale value across different gift card amounts for specific brands and set a good Reserve Price. The resale value only reflects what people historically are willing to pay for specific gift card brands. Resale value does not take into consideration listing, final value and transaction fees charged by eBay and PayPal.
[edit] Verify
Most merchants provide several methods to verify the remaining balance on gift cards issued by them. The instructions are usually printed on the back of the gift cards. For gift cards that are redeemable online, do not give out the gift card account number and PIN to potential buyers. Scammers can use the account number and PIN to make online purchases without having the physical card. Be aware that buyers are hesitant to buy gift cards with a scratched of PIN as they in turn can get scammed by the seller. Best way to verify is to visit the merchant and have them verify the amount.
[edit] Short and Concise Title
A short and simple title containing the gift card’s brand name, remaining balance and the key words “gift card” is what is needed for an effective title. For example, the title, “$50 Barnes & Noble Gift Card ” is very descriptive and to the point. Incorrectly spelled brand name for gift cards can result in a lower resale value, because potential buyers searching for that brand will not see the listing. It is common to misspell long brand names, such as Abercrombie & Fitch, or even popular brands, such as Startbucks misspelled for Starbucks.
[edit] Shipping Options
Decide upfront to offer free shipping, have the winner pay for shipping, or propose local pickups. Offering free paid shipping for gift cards usually does not influence the resale value substantially, because most bidders take into account the shipping cost when bidding on fixed price items. Offer local pickup to reduce shipping cost for local winners. However, do not offer local pickup as the only delivery method as this will reduce the number of potential bidders. For gift cards with face values of several hundred dollars, consider shipping with insurance as this can protect from possible frauds. In the description, it is a good idea to describe the gift card’s terms and conditions and any expiration date.
[edit] Method of Payment
Decide whether to accept credit card payments via PayPal or not. Accepting credit card payments will improve the chances of getting a higher resale value than just accepting only checks and money orders. However, accepting credit card payments also opens up possibility of getting scammed via credit card fraud. Minimize this risk by stating in the description that gift cards will only be shipped to confirmed PayPal addresses. PayPal offers a Seller Protection Plan, however, all the requirements must be followed to qualify for it. One of the requirements is shipping to confirmed PayPal addresses. Be aware that PayPal charges a fee of 2.9% + $0.30 for processing credit card payments.
[edit] Coincide with Promotion
Occasionally, eBay in junction with PayPal or third party (Microsoft) will offer promotional codes that buyers can use to get a discount on their purchases. In the past, the discount codes offer 10% off up to $25 on purchased made on eBay paid using PayPal. Selling gift cards, when these promotional discount codes are being offered can help get a higher resale value. Historical data indicates that people are willing to pay for the full or slightly more than the gift card’s face value, especially for the more popular gift cards, when these discount codes are available.
[edit] Follow eBay’s Rules
eBay only allows one gift card listing at a time per seller. The gift card value cannot exceed $500. The restrictions were implemented to reduce the number of buyers getting scammed. The complete restrictions governing gift cards is available on eBay.
