Signing up for new credit cards to earn points is just one of the many way to travel for “free”. Some of the large blogs have little interest in paying their writers to blog about alternate ways you can earn money and points outside of new credit cards. I get it, they make revenue off credit card links, they have a business to run, no harm-no foul.
The eBay Way
In this post I am going to show you a method of reselling on eBay which requires thinking a little out of the box. Reselling on eBay can actually serve three or more goals, when they align it is magical! Here is what you can accomplish:
• By purchasing goods to resell, you can more quickly meet your credit card minimum spend requirements (which leads to big bonuses and big travel)
• When spending a large amount on goods, you can obtain spending threshold bonuses like 10,000 MQM’s from Delta. (must spend $25,000 in one year)
• Make a little extra cash for doing something in your pajamas and in your free time
• Earn bonus points or cashback from your credit card of choice, a 2% cashback card works great when spending thousands on product to resell
• Use cashback and shopping portals when purchasing product online – more points or more cash, your choice
I need a Raise
Here is where the ‘thinking out of the box’ comes into play. I will purchase a discounted gift card from Raise.com for online merchant A, then use that gift card to purchase my eBay product from online merchant A.
I was able to purchase an Oakley e-gift card on Raise.com at a 20.1% discount. That means I saved $38.95 when purchasing a card with a face value of $193.95. If you have a plan on what you are going to buy, why not save money by swapping currency? You can find the best deal on gift cards for each merchant by checking Gift Card Wiki. (though some other companies don’t deliver the gift cards as fast as Raise)
After you click-through eBates and then buy your gift card from Raise.com, it is time to purchase your ‘resell’ product. The good news is that Raise delivers my e-gift cards via email in just seconds after purchasing.
Earning 6x Avios points when purchasing your resell product is much appreciated! You can fly for just 4,000 Avios one-way on OneWorld carriers internationally, zone one. Off-peak applies to BA and Iberia.
London to Edinburgh is just 4,000 Avios one-way off-peak! Since the three backpacks purchased on Oakley.com totalled $225, I will earn 1,350 Avios. That is a third of the way to one-way short-haul award flight.
What to buy?
Simply put, you want to buy items that can be sold quickly at a profit and can be shipped relatively inexpensively. I purchased three Oakley backpacks that are on clearance from $150.00 to $75.00. These backpacks ship for free and taxes are only 6.3% in my area.
Total cost for three backpacks shipped from Oakley:
$225 ($75 x 3)
+ $14.18 in tax
$239.18 grand total
Now, since I paid with my $193.95 e-gift card obtained for $155, I saved $38.95 off that total. My effective “shipped” cost for the three backpacks is $200.23 ($66.70 a backpack)
These backpacks are averaging a sales price on eBay of around $105 shipped. I don’t expect them to sell quick but they will sell in a few weeks, no rush and no cost to have them sit on there.
And yes, people will buy things on eBay even though they can be found for cheaper elsewhere. Some people have eBay gift cards that need to be used, some people just assume eBay is the cheapest. Either way, it happens all the time for me.
If I sell them for $100 + $5 shipping here is how my breakdown will look:
$105 in gross sales
– $12 in eBay/PayPal fees (I subscribe to a basic eBay store for $20 a month to save on final value fees)
– $10 in shipping (Fedex Sure Post)
$83 in gross profit per backpack
My effective product cost is $66.70 a backpack since I used a $193.95 gift card to partially pay for the three backpacks. I paid only $155 for that gift card, a 20.1% discount.
That means I will make roughly $17 per backpack, a fair profit based on the cost. That’s $51 in net profit on the three items.
My total “haul” will look like this using a 2% cashback credit card:
— $200.23 charged to 2% cashback card – $4 earned
— $155 purchased on Raise.com through eBates portal – $1.55 earned
— 1,350 British Airways Avios (6x multiplier)
— $51 in profit from the items
That is $56.55 in ‘cash’ + 1,350 British Airways Avios which I value at $20.25 (1.5 cents a piece in value)
If you don’t care for the British Airways Avios, you can also use the eBates portal for 6% cashback from Oakley earning you $13.50 rather than the 1,350 Avios.
If you had a minimum spend, this would be $200 towards that. You would in theory earn $56.55 in “cash” PLUS earn $20.25 in points value. Since you can list the three backpacks in a single multi-item listing, it takes no time at all. Once you get familiar with eBay the total listing and shipping time would be about 45 minutes for this deal. Not a bad haul in 45 minutes + minimum spend possibilities.
Now, I normally go for much higher cost/margin items (like $500 cell phones), but I wanted to show how you can get creative even on inexpensive items. (especially if you are just starting out)
I did a very similar “deal” like this from Oakley about two months ago with three similar backpacks earning $104 in cash (that is profit plus cashback portal). All three items sold within a week and I got 100% feedback! You just have to think out of the box sometimes.