Buying Gift Cards on EBay

It's true that you can buy anything on eBay, including gift cards and gift certificates to retailers across the country. In certain situations, it can be quite a nice deal for the buyer, saving them 5%, 10%, or even more. Here are some FAQs related to buying gift cards on eBay.

Buying Gift Cards on eBay: Why buy a gift card on eBay?
Let's say that you want your nephew to get some new clothes for his birthday. If you take him shopping yourself or buy him a gift card directly at a clothing store, perhaps you can afford $75 for the present. But using that $75 on eBay - as long as you're not in a rush - you might be able to buy a $100 gift card to the same store! Another example: one person I know bought a $200 gift card to a bookstore on eBay for $165 because he anticipated buying a slew of books the next month and was happy to get a $35 discount this way

Buying Gift Cards on eBay: How can people afford to sell these things for less than their value?
Sometimes people receive gift cards that they don't personally want or need - perhaps a present from a misguided relative, a thank-you from an employer, or a bonus gift for buying something of greater value. I once got a $50 Best Buy gift card along with a computer I bought. Instead of gift card's dollar amount worth of merchandise, folks might prefer to sell a card for less than it is technically worth in order to cash out. If given the choice between $80 in their PayPal account or a $100 gift card to a random store, a lot of people will take the cold hard bucks. Also, some eBay business people buy gift cards in bulk and get a discount on them. If they buy $50 gift cards at $40 a pop and sell them at $45 each, they make money, but the buyer saves too.

Buying Gift Cards on eBay: How good of a deal can I get?
It depends on a number of factors: the popularity of the merchant, the value of the gift card, the expiration date (if one exists), how long the auction runs, etc. You're likely to get a better deal on unusual merchants or regional stores than you will on popular national merchants like Target, Borders, and Gap. That said, you can typically save anywhere from 5% - 20%.

Buying Gift Cards on eBay: What about shipping?
Pay attention to shipping costs to make sure they're not exorbitant. A $40 bid for a $50 gift card is a good deal, but if the seller is charging some ridiculous cost for regular first-class shipping (like $8), your savings decrease dramatically. Most sellers offer gift cards with "free" shipping or a nominal charge because they weigh next to nothing and cost little more than a stamp.

Buying Gift Cards on eBay: Should I buy insurance?
If the seller offers insurance, it's your call. Sending gift cards through the mail is like sending cash. If a gift card is stolen a thief could use quite easily without getting caught because there's no real paper trail. That said, the insurance may not be worthwhile on smaller card amounts. You have to make a decision based on what you're spending. Personally, I would skip insurance on a $50 card, but I would probably buy it on a $500 card.

Buying Gift Cards on eBay: Does eBay restrict gift card sales?
They do impose some rules. For example, sellers are not supposed to sell multiple gift cards as a set or gift cards over $500 in value.

Buying Gift Cards on eBay: Are there any scams to watch out for?
You bet! Some people sell "mystery" gift cards on eBay claiming that the amount you will receive is "between $5 and $500." Often, these sellers trying to entice you to gamble and bid, say $10, in the hopes that you'll win a $250 gift card - but in reality, you're likely to win a small amount and possibly even less than your bid. I'd recommend avoiding these auctions, as common sense should tell you it's a little shady. (If anyone has done this and actually won a large amount, please tell us by adding a comment to the article.)