[Money] Is Gift Card Flipping Profitable?

I have been writing about gift cards because I remembered a classic economics paper-

Then as I was searching through gift card wiki, going over discounted gift cards and I remembered about gift card flipping.

I was a PhD student without much money so I thought of ways to increase my income. I wanted to eat more than noodles and Subway. I also love investing and making money efficiently. Plus, when your research is stuck, anything looks interesting and appealing.

So I came across gift card flipping on the web-

You buy discounted gift cards and sell them at a higher price.

The strategy is simple but the risks are huge.

First, without a website that verifies the gift card amounts, you can easily get scammed. If you use a gift card website, then your margins will be lower.

Lower risk, lower return-

To make up for that lower margin, you need to buy in bulk, which as a PhD student, I didn’t have that much money.

Second, selling your discounted gift cards would be hard too. You will need to discount it anywhere you sell because information asymmetry is high. So margins will be low again. Then we have to focus on volume again.

In order for you to make money flipping discounted gift cards, you need to buy in bulk and sell in bulk slightly higher.

So I have been thinking about this for a bit and I think you can make a bit more profit, if you buy retailers that just went bankrupt because some people will just sell due to fear of not being able to use the gift card.

By exploiting this panic selling, you can buy it at a cheaper price and sell it a higher place at a later date. Given that many gift cards don’t expire, you can make some profit, as long as someone does defraud you with unloading the gift card.

But a more efficient way to well…make money by saving is to buy heavily discounted gift cards and use them right away and use the money that you have saved for investing.

So for me, I am waiting to go big on Black Friday. So I would buy some Best Buy Gift Cards at 8% discount may be 2-3 days before Black Friday and save even more! And use that saved money to invest-

Not a bad idea-

Thank You Jesus for all Your love and mercy. Let us always be thankful and share Your love and blessings- Amen

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