The Gift Card reselling market usually sucks during the first couple of months of a year, prolly because consumers are detoxing with a hangover from holiday shopping and aren’t sick of their new toys (yet). The hangover is ending now though and the gift card secondary markets are really starting to pick up. A few of my observations for April:
- Consignment sale holding time has shortened considerably, with the turn-around time dropping to one to three weeks for big retail brands (exceptions: Home Depot, Target)
- Appetite in private markets for volume gift card sales is soaring, kinda like PLBY stock
- BestBuy gift card resale rates are creeping back up (I’ve seen 1-2% higher in the last couple of weeks, and break even deals when grocery rewards are included)
- Capacity for immediate/non-consignment sales in gift card clubs is growing
Retailers are also starting to offer big discounts for Easter, and usually this trend just continues to pick up steam until mid-Summer.
If you don’t have any gift card reseller relationships, there are a few good exchanges out there. Stick with something reputable, good volume, and a good reputation in the community. There are a couple of gift card sellers that I have gotten to know personally and that I trust with bigger volume. That said, always keep your outstanding float in gift cards no higher than the dollar amount you’d be willing to lose if everything went wrong, and spread out your reselling amongst as many reputable sources as you can so if one fails, your whole portfolio isn’t gone. (c.f., The Plastic Merchant, which went bankrupt in 2019 and left resellers holding the bag)
MS note: In the right circles, you can easily do $30-60k of gift card reselling per week after you’ve developed relationships and moved into inner circles, so don’t ignore this technique. Do start out with something really small and slowly ramp over time though, so if you make newbie mistakes they don’t cost you much. As always — don’t push this beyond the amount you’d be willing to lose if something goes wrong. It can happen and has happened.