Tuesday, June 16, 2015

Turnover Tuesdays - The Great iPad Deal that Wasn't!

Disclaimer: I receive a referral commission for the following link(s) and I greatly appreciate supporting the site: eBay, Amazon

For those who are not familiar, I started a series four 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 4 - Bed Bath and Beyond
Week 5 - An iPad Idea for Your Staples Gift Card Collection

A few weeks ago, I was super excited about buying an iPad on eBay.  Things didn't work out as planned, but here is what it would have been like if it had worked out.

The Item - iPad Air 2 128GB

There was a seller on eBay that was discounting the iPad Air 2 128GB.  The price was 589.99.  In addition, there was no sales tax to send it to NJ.  I decided to send it to my wife's work in NJ.

I bought two of them (that was the limit from the seller).

Total price paid is $1,179.98

Shopping Portal

Top Cashback was giving 1.5% cashback so I earned $23.6 from Top Cashback.

Credit Card Points

I used the American Express Platinum to buy the gift cards on eBay which earned 1,180 MR points.

Loyalty Points

I was targeted for a 5x eBay Bucks promotion, which was the real reason I was looking to buy something.  That's the equivalent of 10% in eBay Bucks.  I bought the two iPads in separate purchases since you can only earn a maximum of $100 in eBay Bucks in one transaction.

That's about $118 in eBay Bucks.

Fulfillment By Amazon Fees

On this particular item, the fees are about $42*2 = $84.

Shipping fees are about $4.50 for one and about the same for two.

The item can be sold for $660-$680 (I recently sold it for $680) on Amazon .  Your takehome is $633.50 per iPad after Amazon's fees if you go with the price I recently sold it for.  That's $1,267 for the two of them.

Final Tally

$1,267 is better than the $1,179.98 by $87.02 or over 7%.

Here is how the numbers work
Cash = $87.02
Credit Card Points = 1180 MR.
Loyalty points = $118 in eBay Bucks towards a future purchase at eBay.
Portal Points = $23.60

The takehome is $240.42 or 20.37% if you count MR points and eBay Bucks as 1 cent (Not too shabby!

This is without buying any eBay gift cards which would increase the profit margin further.

Lessons to be Learned

Don't send anything to my wife's office.  I was waiting for it to come and then I got this email:

My order was cancelled.  It turns out that UPS couldn't verify my wife's work address, never contacted me and then sent the order back after 2 days.  I was not so happy.  Expensive lesson learned.