Valuable Tips for Buying Gift Cards Online
Many people have saved hundreds of dollars by scouring the internet for used gift cards that can be bought, sold and traded online at incredibly low prices.
The purchase of a second hand card is expected to be one of the most popular gifts to date, generating around twenty billion dollars in total retail sales during the holidays each year. Many experts expect a total of sixty billion more to be spent on store brand specific cards in the coming years.
However, a rarely known fact is that approximately 10% of the dollars in all those cards sold are not actually spent. As a result, many sellers have suddenly sprung up online creating a little-known secondary market for these popular items. Many analysts estimate that this is an additional 2 billion dollars in additional sales.
For all buyers, these private and professional sellers present an incredible opportunity to purchase one at savings of 10 to 50 percent of the original face value. All of these cards can be given to friends and family or redeemed for store merchandise. For all merchants, this can be an easy way to exchange an unwanted gift card for a more desirable one from a store they really prefer without the original donor knowing anything about it. For all sellers, there is rarely a quick and easy way to get cash for your unused card.
As a note of caution, gift card exchangers should be very careful when exchanging cards. While most online sellers are legitimate, the secondary market is still a developing business. Although there are a variety of policies and protections, a transaction is only as secure as the people who mutually participate in it. Additionally, there is still a very real concern regarding stolen merchandise and fraud.
Currently, there are many different business models when it comes to buying second-hand cards online. A closer look at this issue reveals that there are a growing number of reputable online marketplaces, such as eBay.
You can also buy these cards online at specific card merchant websites, but all of this usually comes at a price. Although it varies from website to website, these specific used card sites typically require users to pay a registration fee, usually between fifty cents and a few dollars, or a transaction fee of 3-8% of the total value of the card. gift card. Many of the sites charge a combination of both, which can really reduce the total value of your card.
Another fact to keep in mind is that not all gift cards are exchanged equally. Paying close attention to market demand will help you in your search for the perfect used card.
First of all, you have to be careful and consider many things, such as when to buy and sell. Many gift card exchange sites are disproportionate in their supply and demand and have significantly more sellers than buyers on any given day. However, during the first few weeks at the start of each year, particularly in the month of January after the holidays, that imbalance is amplified when the market is flooded with unwanted holiday gift cards. Other peak time periods include the weeks after similar popular holidays such as Valentine’s Day and Mother’s and Father’s Day.
For the savvy shopper, this means a much wider selection to choose from and prices that could be 15-20% lower than other times during the rest of the year. For potential sellers, it can be a good incentive to wait, but not too long. Some gift cards that have expiration dates or charge fees when not redeemed are prohibited from most online websites to avoid trouble.
Second, you need to consider what to buy and sell. While it’s not easy to tell from an occasional visit to these websites, frequent second-hand buyers and sellers understand that not every used card is a bargain. Most cards are sold at a ten to fifteen percent discount off their full face value. Keep in mind that a thirty to forty percent reduction is considered a great deal. However, the popularity of the retailer and the condition of the card are critical in determining whether a used card is truly worth its price.
If you look at it from a shopper’s point of view, the biggest deals can be found at national retailers that carry many unique gifts. Cards from these nationwide chain stores take longer to sell, in most cases, and are often discounted by 20 percent or more. Smaller regional stores often sell fifteen to twenty percent off because there are fewer bidders and less demand. Cards from larger retailers trade at a higher discount after the holidays, as so many impulse purchases are made that the secondary market is flooded with pre-owned gift cards.
Now if you look at this from a retailer’s point of view, the gift cards that make the most money are for big box retailers and discount chains. Demand is also quite strong for used gift cards from office supply retailers. They all generally generate a return of at least ninety cents on the dollar.
However, for most shoppers it’s a good rule of thumb to consider the discount in addition to the actual full value of the gift card. While twenty percent off a twenty-five dollar gift card is nice, twenty percent off a hundred dollar gift card can be much better if you pay attention to transaction fees and other potential risks. From a seller’s perspective, that reasoning also makes exchanging a gift card an attractive offer instead of just trying to sell it.
It is recommended that you inquire about the status of the card, especially if you do not plan to use it personally. Some websites have a condition rating system that rates the wear and tear of each card, while other sites allow you to email the seller. Finally, it is of the utmost importance that you verify that it is indeed a gift, not a voucher or store credit, which sometimes appears deceptively similar.
Some final precautions to keep in mind are the possibility of ending up with something very different than what you originally thought it would be. A seller of used gift cards should expect prompt payment, and buyers should use a credit card or online payment service and expect to receive a card within a reasonable amount of time.
Today, almost every auction website or online seller includes some form of fraud protection, although the complexity and extent of the coverage varies. Notably, on eBay, sellers must sign up with a credit card and are limited to selling one card each week with a stored value of up to five hundred. This ensures that the shopping experience for someone looking to purchase used gift cards is safe and enjoyable. Search our extensive directory to find the right used gift card for you or your family and friends. Buying used gift cards online is simple and easy and can be done from anywhere in the world.
