Selling Gift Cards for Extra Income: Pros & Cons For 2024
Looking to earn a quick buck with minimal effort? Selling gift cards can be a hassle-free way to turn unused gift cards into profit.
- Selling gift cards offers low startup costs and potential for consistent profits.
- Profit margins range from 4% to 10%, accumulating over multiple sales.
- Start with minimal investment, and expand inventory as experience grows.
- Challenges include scams, platform fees, and inconsistent sales during off-peak seasons.
Brett Helling is a gig economy expert who has been running his own small business for over 10 years.
Have you ever wondered how you could turn your stash of unused gift cards into cash?
Are you looking for a flexible side hustle with low startup costs and a potential for sizable profit margins?
Selling gift cards might be the answer you’re looking for.
With dozens of gift card marketplaces available, selling gift cards has become more accessible and convenient than ever before.
These platforms allow you to connect with potential buyers and sellers from various locations, or sell the gift cards directly to the website itself.
In this way, this side hustle offers opportunities for beginners and experienced entrepreneurs alike, with minimal loss or risk involved.
An Overview of Selling Gift Cards: A Primer
Buying discounted gift cards and reselling them at a profit can yield significant returns, especially if they’re rare or in demand.
With more than 40% of US shoppers buying gift cards as presents, there’s little wonder why the gift card industry is dominating the market.
By 2027, the industry is expected to reach an astounding $1.9 trillion in total value, boasting an annual growth rate of nearly 60%.
As the industry continues to soar, now’s an excellent time for side hustlers to enter this lucrative market.
The fact that it involves a minimal startup cost is a good bonus.
You can start with gift cards costing no more than a few dollars and gradually expand your inventory as you gain experience and find your niche.
Even if you don’t find buyers, unwanted gift cards can be sold for a percentage of their value (usually 75 to 90%) on gift card marketplaces, so you can test the waters without substantial financial risk.
More on that later.
How Much Can Selling Gift Cards Earn You?
With the right strategy, you can make between a 4% to 10% profit from selling gift cards.
This may not seem like a substantial amount, but the value adds up over time.
If you sell multiple gift cards a day, this profit margin can translate into a meaningful source of additional income.
People with dozens of unused gift cards often sell them at a low price to get rid of them.
You can take these unwanted cards and resell them on websites like GiftCash and Cardtonic for up to 90% of their original value.
As long as there’s a steady supply of these unused gift cards and you’re smart with your purchases, you can establish a reliable income stream.
How Much Does it Cost to Start a Side Hustle Selling Gift Cards?
Selling gift cards has a minimal start-up cost. You can spend a few dollars for initial inventory and gradually expand as you see fit.
Some online platforms charge fees for listing and selling gift cards, but they’re usually too excessive.
You can avoid these fees by going to reputable, free-to-use sites like Gift Granny.
Creating an account is free, and you won’t incur transaction fees when selling cards.
If you plan to sell physical gift cards and ship them to buyers, you may have to spend a bit of cash for packaging materials and shipping.
But with e-cards, you don’t have to deal with physical inventory, multiple transactions, and shipping logistics.
This not only saves you money but also simplifies your operations, allowing you to focus on listing, marketing, and selling.
Where Can You Sell Gift Cards?
There are various websites where you can sell gift cards. Here’s where to start:
Where to Independently Sell Gift Cards
In most cases, independently selling gift cards will net you the highest amount of profit.
You’ll still have to rely on marketplaces like eBay and GameFlip, but going the independent route gives you more flexibility and control over your listings.
You also have the freedom to negotiate terms with potential buyers, which is particularly useful if you’re selling high-value, rare, or collectible gift cards.
On eBay, you’re allowed to sell paper-based gift cards, phone gift cards, and travel gift cards.
You can also sell collectible gift cards with no redemption value, so long as you mention it on your listing.
The problem with selling on eBay is that you can only sell one gift card per listing, even if you have multiple eBay accounts.
You’re likewise not allowed to sell gift card codes, store credit in the form of a receipt, and gift cards worth more than $500.
Compared to eBay, GameFlip is a bit more lenient. GameFlip caters to avid gamers, so you’ll have better luck selling game-related gift cards on this platform.
However, the company charges a commission and digital fee for selling digital gift cards. Factor this into your pricing.
Gig Economy Companies That Offer Gift Card Resell
There’s a surprising number of websites that specialize in selling unused and unwanted gift cards.
Among the most popular is Gift Granny, an online discount gift card retailer.
To sell on the site, you enter the brand of card and the remaining card balance. Click “Get Offers Now” and from there, you’ll receive several offers.
CardCash is another reputable site for selling gift cards. The website makes immediate offers on your gift card, typically ranging from 80% to 90% of the card’s value.
If you want to sell to individual customers, Raise is worth looking into.
Unlike Card Granny and CardCash, where you sell gift cards to the platform itself, Raise allows you to sell your gift cards to another person.
Raise takes a small commission for every card you sell.
Why You Should Consider Selling Gift Cards As a Side Hustle
Here are some enticing reasons why you should start selling gift cards as a side hustle:
- Low startup cost: You can start selling gift cards for as low as $10 or $20 as a starting capital. As you know more about the business, you can gradually increase your inventory.
- Quick income: Websites that specialize in gift cards often pay you on the spot. This makes it suitable for those looking for fast and reliable ways to convert gift cards into cash without waiting for customers.
- Low financial risk: Unlike other side hustles, selling gift cards doesn’t put you at a significant financial risk. Even if you don’t sell the gift cards at a profit, you can still recover a substantial portion (up to 90%) of your expenses by selling it on Gift Granny, Card Cash, and similar websites.
Problems With Selling Gift Cards
Here are some common issues you might encounter when selling gift cards:
- Scams and Fraud: Some buyers may attempt chargebacks or fraudulent claims, leaving you with financial loss.
- Platform fees: Most online marketplaces take a percentage-based commission for listing and selling gift cards, which can reduce your profit margins.
- Unpredictable returns: Though often profitable, selling gift cards doesn’t always guarantee a return. During off-peak seasons, sales may slow down.
Frequently Asked Questions
Is Selling Gift Cards a Sustainable Side Hustle?
The sustainability of your gift card resale side hustle depends on your commitment and ability to manage the business effectively. If you don’t go out of your way to stay informed about market trends, it may not be as sustainable as other side hustles.
Who Sells Gift Cards for Cash?
Platforms that sell gift cards for cash include gift card resale websites (CardCash, Raise, etc.), online marketplaces (eBay and Craigslist), and, to an extent, gift card exchange forums and subreddits.