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December 17, 2007

eBay Selling: Gift Cards

eBay selling of gift cards can be a lucrative income stream on eBay. But according to Jennifer Pate, an economics professor at Loyola Marymount University, all gift cards are not equally valued by eBay buyers. According to Pate, the top 10 most valued cards are:

1) Home Depot
2) Lowe's
3) Office Max
4) Circuit City
5) Starbucks
6) Old Navy
7) Wal-Mart
8) Target
9) Staples
10) Best Buy

She claims the least popular are:

1) Tiffany & Co
2) Victoria's Secret
3) Abercrombie & Fitch
4) American Eagle
5) Express

Her criteria for 'best' and 'worst' are based on the discount rate of the coupons. The average discount is 15% but the better cards are a maximum of 14%, while gift certificates for Express, for instance, are a heftier 26%.

Pate further claims that eBay buyers value cards based primarily on two factors:

* The number of stores: obviously, the greater the number of stores, the easier it is to spend the gift cards
* A wide variety of merchandise

Clearly, there are some strong lessons here for those who are interested in selling gift cards on eBay.

Posted by SydneyJohnston at December 17, 2007 11:16 AM

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