I am going to start a monthly series to share my reselling endeavors. I will share my winners and losers. Fortunately I didn’t have any losers in May.
To bring everyone up to speed, reselling is a rather simple concept, you find things on closeout/clearance and resell them on eBay, Amazon, or Craigslist. That is how you make cash right? Buy low, sell high.
How do you earn points by purchasing goods to resell?
Almost every airline and hotel has a shopping portal that earns you bonus points for purchasing items using their links. This is in addition to the points you earn from your credit card. If you aren’t interested in points you can also earn cashback from portals like TopCashBack and eBates. To find the stores with the best shopping bonus I like to use www.cashbackmonitor.com. Reselling is also an easy way to hit your minimum spend on new credit cards!
Last month I did pretty well, I earned about 19,000 points and earned over $800 in total cash. This month I didn’t earn as many points but I did earn more cash, around $1,300 ish.
Here is how I earned $1,142 on 10 items in 10 hours.
Best Buy was having a crazy sale on Samsung Galaxy S6 Edge phones. These were being sold for $199 in the 32gb variant, that is super cheap. ($299 for the 64gb) These phones would cost you around $500 if you walked into a phone dealer and paid retail. Why Best Buy was selling these so cheap I will never know, nor will I care! I scooped up eight of the 32gb-ers and two of the 64gb-ers. All in for the ten phones = $2,388. (Remember what I said about hitting your minimum spend?)
Best Buy does not offer much for a shopping portal bonus, only 1 point per dollar spent through Chase Ultimate Rewards portal. (which is my favorite portal for earning) You also earn at least 1 point per dollar on your credit card by simply making a purchase. I used my Chase Ink card which also earns Ultimate Reward points. Total Ultimate Reward points earned = 4,776.
Those points can be transferred to Hyatt, Southwest, United, and many other partners. At Southwest those points are worth $80 towards airfare (well double for me since I have Companion Pass). If I transferred 5,000 Ultimate Reward points to Hyatt, that would earn me a free night at a category 1 Hyatt hotel. I was just shy of earning a free night at a Hyatt for buying these phones, not a bad freebie for buying products to resell, right? This purchase also netted me $45 in Best Buy bonus cash.
I sold the phones on eBay for a very healthy profit. I sold the 32gb phones for around $380 a piece and the 64gb phones for about $440. Ebay takes 6% and Paypal takes 3%. I highly recommend signing up for an eBay store if you are going to resell often. A basic store is only $20 a month but reduces your final value fees by 3-4% on average. I sold nearly $4,000 in phones last month which means that a 4% reduction in final value fees saved me $160 ($140 if you subtract the $20 store fee).
I did sell some other items last month in addition to the phones. I sold 6 GoPro Hero’s, a camera and a couple of laptops. So if we count those items into the equation I made a little over $1,300 in net profit and a total of 9,000 ish points. In all I probably spent 20 or so hours with listing the items to shipping them. That comes out to $65 an hour and doesn’t include the value of the Best Buy money or the points’ value which combined is worth around $200. USPS will come pick up the packages at your door for free so you really don’t need to leave the house to make money.
How do you get in on this action?
I will post the smoking deals I find on our Facebook page so make sure you subscribe and make sure you set the notifications to show at the top of your news feed. I didn’t start this blog so that I could have all the fun, I want everyone to share in the travel/points/reselling game. If you have questions about reselling feel free to reach out, we are always happy to give input!