Another successful sale. Looks like my turnaround on selling things on Amazon is about two weeks. 90% of that is sending it to Amazon and then Amazon moving it to another warehouse. The transportation delays are a pain because my items show up as back ordered until it arrives at whatever warehouse they are sending it to. Generally, it seems once the iPad is not moving around and is in the buy box they sell within a day.
The downside of the two week turnaround is that I am not selling as many things as I would like. Until I get the hang of this I am only selling one item at a time and generally not looking for another item until I sell the current one.
When I get more confident in this process I will start to sell multiple items at once.
- iPad Air 2 128 GB
- Purchase Price = $534.99
- Southwest Points Earned = 535
- Sale Price = $643.99
- Fees = $45.36
- Profit = $63.64
Not bad for less than an hours work. Earned miles and cash.
I am very encouraged with my recent success selling an iPad on Amazon so when I saw another sale at Best Buy I decided to try again. Here are the details.
- iPad Air 2 128GB
- MSRP: $699
- Purchase Price: $534.99
- Amazon List Price: $645.59
- Expected Amazon Fees: $38.38
- Anticipated Profit: $71.82
- Points Earned: 534 Southwest points and 534 Best Buy reward points
I am currently trying to meet the minimum spending on my wife’s Southwest card so the purchase was made with that. After meeting the minimum spend on the Southwest card that will trigger a bonus of 50,000 points. The minimum spend is $3,000. The profit from the resale will also offset the cost of the annual fee, $99, which was not waived.
As for the deal itself, how did I get a $699 iPad for $534.99? It was a combination of taking advantage of a sale, using a 10% off coupon, and redeeming a best buy rewards gift certificate. You can get Best Buy 10% off coupons at the post office in their change of address packet.
I could have made this deal stronger in a couple of ways. First, I didn’t use a portal like I did in my last deal. I totally brain farted that. In looking back at the portals the deals were not that strong so I didn’t miss out on much. I would have been kicking myself more if there was a 5% cash back offer.
Second, I could have bought Best Buy gift cards at at discount from Cardpool.com. The current discount is 6%. That would have brought my cost down by another $32. I did contemplate doing that but it would have required me to buy $535 worth of gift cards spread across 8 gift cards. I have not done that before so was not comfortable with going all in like that. I think next time I will test it out by buying a couple and seeing how it works.
Fingers crossed this attempt works out as well as the last one.
This is an update on my second attempt at reselling. My first attempt did not go so great. The second attempt was a great success.
To recap, I bought a 16GB iPad Air for $244.99 at Best Buy. I did so through Alaska Airlines’ Mileage Plan shopping mall. At the time they were offering a 2x bonus at Best Buy so I earned 540 miles on the purchase. I listed the iPad on Amazon using Fulfilled by Amazon.
I initially listed the iPad at $365. There were a couple of iPads listed at a lower price but I decided to be a little greedy and hoped those would sell quick and then mine would be next in line. The iPad ended up sitting for a few days and I grew impatient. I dropped the price by $10 and it sold within 3 hours of the price drop. After Amazon’s fees I ended up with a profit of $89. Not too shabby.
- iPad Air 16GB
- Purchase Price: $244
- Sale Price: $355
- Net to me after fees: $333
- Profit: $89
- Miles: 540 Alaska Air miles.
At first blush you may think what’s the big deal, it is only $89 and 540 miles. True, but the potential is in scalability. I’m not in the comfort zone yet of buying in bulk and will probably continue to do one at a time for awhile, but imagine this times 5 or 10?
Ok, so I finally got around to taking another crack at reselling. Hopefully this works out better than my first attempt. I’m feeling pretty confident in this one. Here is the deal breakdown.
On Saturday I was kicking myself in the pants for having not caught the Black Friday in July sale that Best Buy had over the weekend. They were selling iPad Air 2s with a $125 discount . When you combine that with an Amex offer of $25 off $250 at best buy it is a winner. Well by time I noticed they were sold out.
Today, when I got an email about a Cyber Monday in July sale, I jumped on it. iPad Air 2s were not on sale but iPad Air’s were. They were $100 off. I was also able to take advantage of the same Amex offer and I had a 10% off coupon. The deal broke down as follows.
- Purchase Price = $244.99
- Best Buy Rewards = 269
- Alaska Air Miles (I used shopping portal) = 538
- Amex “Old” Blue Cash points (.5%) = 134
About the Blue Cash points. This month we got the Amex “Old” Blue Cash card. This card will earn 5% cash back on gas and groceries after spending $6500. Ordinarily I would not have used that card for this purchase. However, this purchase put us over the $6500 mark. So moving forward we will get 5% cash back on all gas and grocery purchases.
How much do I hope to earn in profit? Currently this iPad is selling on Amazon for $365. After Amazon takes their commission I hope to earn $338. That is a profit of $93, plus 538 Alaska miles, $2.69 in Best Buy Rewards, and triggering my 5% cash back bonus on the Blue Cash card. Not too shabby for about 30 minutes work this morning.
I want to get into the reselling business because I think it will be a great way to earn frequent flier miles and pocket a little cash on the side. For the uninitiated, the gist of how you earn miles and points by reselling is that you buy a product using your miles earning credit card. You buy low and sell high. After you sell the product you pay off your card and pocket the profit. When you couple this strategy with meeting minimum spend requirements on a new card it can be a great way to earn miles and some cash.
Once I decided to take a crack at reselling I did a lot of research online. I found a pretty helpful reselling guide that does a good job of spelling out the basics over at frugalhack.me. The guide does a pretty good job of explaining the basics as far as looking for deals, where to buy, and how to resell.
As I am a rookie reseller, my strategy will continue to evolve. However, thus far my strategy is to watch slick deals and look for a good deal I think I can take advantage of. Finally yesterday, a deal came up that I thought was a good one to get started with. It looks like Best Buy has a pricing mistake on their Sony Bluetooth Noise Canceling Headphones. A price mistake sounds like a good resell opportunity to me. I also combined the purchase with 3 different cashback mechanisms. The first was that I bought the headphones through a shopping portal. I used Upromise which was 1% cashback. Next, I signed up for Best Buy Rewards which gave me 2% cashback. Finally, I used my arrival card to earn another 2% cashback.
The final tally looked like this:
My First Purchase: Sony Bluetooth Noise Canceling Headphones
- Purchase Price: $149.99
- My Best Buy Rewards Points: 149 ($3)
- Upromise Cashback Portal: $1.50
- Arrival Points: 300 ($3)
- I also got $5 for making my first purchase through Upromise
I hope to sell on Craigslist for a $50 profit.
I thought this was such a good deal that I wanted to buy two, but I opted to take it slow. I will report back on results.