Tuesday, May 26, 2015

Turnover Tuesdays - Bed Bath and Beyond

Disclaimer: I receive a referral commission for the following link(s) and I greatly appreciate supporting the site: Top Cashback

For those who are not familiar, I started a series three weeks ago called Turnover Tuesdays. Every Tuesday I would like to highlight one item that I have resold. This will include profitable and non profitable sales. I hope that there is always something to learn.

Week 1 - First attempt at reselling
Week 2 - My second straight fail
Week 3 - My iPad mini collection
Week 5 - An iPad Idea for Your Staples Gift Card Collection

Here is some interesting information regarding buying and reselling at Bed Bath and Beyond. 

The Item - It's a Mystery

I'm currently buying and reselling this item so I won't give exact details, but there is still much to be learned from the process.

Bed Bath and Beyond is a good place to think about reselling.  The main reason is availability of 20% off coupons and another is their return policy.  You can return for just about any reason (including no reason).

When reselling, I am looking for the following critera:

  1. Similar price at Bed Bath and Beyond and Amazon (limiting factor so far since BB&B is usually much more expensive for the same item.  You can price match or use a coupon, but not both.)
  2. Expensive item - BB&B has 20% off coupons.  This goes a lot further on more expensive items.
  3. Quick Seller on Amazon - You don't need to hold on to inventory a long time
  4. Inexpensive Amazon Fees - electronics has a very small Amazon Fee, other categories are much more expensive, as you will see.

Let's say the item is $500.  A nice round number to work with.

I buy discount gift cards at a minimum of 10% off. I usually buy the gift cards with an American Express Gift Card which gives another 2% cashback. So let's say I buy the $500 item, after taxes for about $537.50. 12% off makes it $473 after gift cards.

Shopping Portal

Top Cashback gives 4% cashback on Bed Bath and Beyond purchases.  So that's $20 since it is 4% from the purchase without factoring in gift cards.

Officially, Top Cashback does not payout if you use a gift card.  I have had success, sometimes.  Still trying to figure that one out.

Credit Card Points

I earn another $9.46 from my Fidelity American Express.

Loyalty Points

BB&B does not have a loyalty program.

Fulfillment By Amazon Fees

On this particular item, the fees are steep! Like $90-$100 steep!

Shipping fees are about $5.25 for one.

The item can be sold for $490 on Amazon (made up number but percentages are pretty close).  Your takehome is ~$385 after Amazon's fees.

You can bring your receipt to Bed, Bath and Beyond to apply your 20% off coupon (in store coupons can't be used online).

If you used a gift card, you will get a new gift card for the 20% which can be used for your next purchase.  If you used a credit card, your credit card will be refunded.

The $500 item just changed to $400, which is $430 after taxes.  You are paying $378.40 with gift cards.

You still get the same $20 from Top Cashback. 

Fidelity AMEX points goes down to $7.56.

Final Tally

$385 is better than the $378 I paid after coupons by about 2%.  This is a gain of about $7.

This is a straight cash play, let's see how the numbers work
Cash = $7
Credit Card Points = $7.56 from Fidelity
Loyalty points = $0
Portal Points = $20

All in all, a savings of about $34, which is slightly more than 9%.  Not bad.  It would be closer to 7% cash with free miles if I chose to use a miles credit card.

Lessons to be Learned

1) Bed Bath and Beyond allows you to apply coupons after the fact, even if you bought the item online.

2) Non electronics have much larger percentage fees than electronics

3) I'm sure there is something else from Bed Bath and Beyond that is even better, be on the lookout!

4) The item was originally the same price at BB&B and Amazon, then it increased by $120 at BB&B and $100 on Amazon.  Normally, this is bad, but the 20% off coupon negated the increased $20 and then the 4% from shopping portals and the increased savings of gift cards actually made it better deal!  The more expensive, the better off I am as long as the spread doesn't increase too much.