Wednesday, April 29, 2015

The Next Manufactured Spend Frontier - Reselling Gift Cards and Merchandise for Fun and Profit!

Credit card sign up bonuses are by far the easiest way to get a lot of points and miles quickly.  The only problem is that if you get too many to quickly it can have some short term negative effects on your credit and you may start get rejected for cards.

After credit card bonuses, manufactured spend is usually the avenue of choice.  The problem with the usual manufactured spend is that avenues are constantly changing and it can be tough to keep up.  In addition, the most lucrative techniques are usually not talked about publicly on blogs.  

Also, many credit card issuers don't like this too much (not as lucrative for them and can look like fraud).  Some have been known to shut down accounts for this very reason (often justification is Perk Abuse - Why do you have the perk if it is abuse to use it?  I digress). 

So when you have exhausted all the worthwhile standard manufactured spend techniques, what is a points/cashback aficionado supposed to do?


Reselling gift cards and merchandise is my latest dip into the wondefully warm manufactured spend tub



There is a lot of money to be lost in reselling and I hope to document my various fails (especially the big ones) because I have learnt from them as well.  That being said, if you know what you are doing, you can build up a lot of points and hopefully some nice profit as well.

Reselling gift cards usually incurs less risk, though there is risk in gift cards as well.

Other Resources
I will talk more about it as I learn more, but if you are interested, there are a few sites and resources you should check out to start wit:

Chasing the Points - reselling gift cards
Doctor of Credit - reselling gift cards

Big Habitat - Reselling merchandise.  There is no specific consistency to posts since resell deals are not consistent, but they Big Habitat's posts are always worthwhile.

Gift Card Granny - updated list of what gift card resellers will pay you for your gift cards.  Please note that eGift cards are almost always treated differently than physical gift cards.  Gift Card Granny does not reflect this for reselling.

Added Benefits
An added benefit from Reselling Merchandise is loyalty points and elite status at stores.  For example, Staples Rewards gives 2% back on every purchase towards future purchases until $499 of purchases a year, $500-$999 give you 3% cashback and once you hit $1,000, it jumps up to 5%.  So, even if you just break even on the first $1,000, you are more likely to make a profit for the rest of the year.  In addition, higher levels allow for more ink recycling.  Best Buy has a similar loyalty program called Rewards Zone, but it is less lucrative.

Another benefit is that allows you to throw in some "regular" spending into your credit card statement.

More to Come!