One of the things that many friends often ask is how do you keep generating so many miles/points. My primary method this year for generating more points has been gift card reselling.
This consists of buying store gift cards (Best Buy, HP, JcPenney, Lowes, etc.) at a discount and then selling them at a similar discount. Some cards can even be sold a profit as you’ll see by my data below.
I started gift card reselling in early 2016, but I’ve ramped up my operations quite a bit since then. I thought I’d highlight some of the numbers from the 3rd quarter of 2017. This quarter spans from July – September. It typically is one of the slower months of the year compared to 4th quarter, which has a bunch of holiday sales.
I’m not sure what numbers interest people the most, but here is some of the data that I’ve extracted from my gift card purchases/sales.
In the 3rd quarter, I sold a total of 643 gift cards. The above pie chart shows a breakdown of the various merchants where I purchased gift cards from. As you can see, there was quite a bit of gift cards from Staples. The average value per gift card was around $97 and the average cost per gift card was around $82.
My cost of goods sold (COGS) for the third quarter was $34,791 and my revenue for these respective cards was $35,700. This means I made roughly $909 in cash profit, which doesn’t include the points I earned on my credit cards.
I earned a total of 148,163 points/miles from purchasing gift cards. These points are roughly worth 1-2 cents per point. Therefore, I have additional earnings worth about $1,500-$1,700. As you can see, I primarily focused on earning Chase Ultimate Rewards. Part of this is also due to the fact that back in the third quarter of 2017, many gift card sellers coded as purchases that earned 5x UR when using your Chase Ink Plus.
Gift card reselling has slowly become one of my favorite side hustles because there’s no need to store large quantities of inventory. It does take a good amount of time to hunt down deals and process gift cards. However, once you have a system in place it’s a nice mindless task to do while watching some Netflix.