Good News Penny Hoarders! I made $187 this week reselling the Apple iTouch!
I’m going to show you how I got bought these below market value and then was able to resell them at a profit on Ebay. I profited more than $30 off of each iTouch I sold!
I purchased these at Best Buy, albeit at a major discount and then simply resold them on Ebay. You could also resell these on Craigslist.com if you wanted to avoid the selling fees that Ebay and Paypal charge.
Just a quick note: I know that this process seems long and complicating. It really is not and should only take you about 20 minutes to buy the iTouch and list it on Ebay. I’ve written it out in a lot of detail so that it will be easy to understand, but I would be more than willing to explain any part that doesn’t make sense if you send me an email or post a comment. Here’s how to do it…
1. Sign up for Bing Rewards – I’ve written about these guys before, because they offer 8% back on every Ebay purchase. It’s 100% Free to sign up. You just need to click on the Ebay link on their site before going to shop in order to get paid your 8%. This 8% is going to come in handy for Step 2….
2. Buy a Gift Card to Best Buy on Ebay.com – There are tons of people selling their gift cards on Ebay. You can ususally get a substanial discount on gift cards to a variety of stores, Best Buy included. That’s important because we are eventually going to purchase an iTouch at Best Buy for resell. Getting a gift card at a discount will help increase our profit margin. The gift cards sell at a 10-25% discount, so I can usually get a $500 gift card for around $425. I also use my Discover card to get 1% cash back on the purchase.
3. Sign up for MrRebates.com – I’m a big fan of Mr.Rebates. They give you cashback for shopping at a ton of different stores including BestBuy.com. Unfortunately, they only give 2% back on Best Buy purchases, but they also give you $5 just for signing up. This is going to make us about $8.94 in cashback rewards, because we are going to purchase our iTouch from BestBuy.com
4. Purchase an iTouch at BestBuy.com – Best Buy’s website is selling the iTouch on sale for $183.99. This is the 8 GB, 3rd Generation iTouch. After taxes and Best Buy’s free shipping the total cost is $196.87. Make sure you use your gift card that you got for only $160 on Ebay!
5. Don’t Forget About Best Buy Rewards – Best Buy Rewards is free to join and will give you free Best Buy gift certificates for entering your rewards number during the checkout process. You can keep the gift card or, or course, resell it on Ebay for even more profits. In this example, purchasing one iTouch on BestBuy.com will earn you approx. $3.93 in Best Buy rewards.
6. Create an Ebay listing for your iTouch – I have had the best results listing my iTouch with a 3-day listing format. Also, start the bidding out at 99 cents to generate interest and keep your Ebay fees low. I have never had an iTouch auction ended unsuccesfully. It’s just one of those products that always sells well.
7. Enjoy your earnings – I’m making an intital $25.37 off of each of these that I purchase and resell. I bought 6 of these last week and made approx. $152.22 for just a couple hours of work. I also have $18.87 left on my Best Buy gift cards that I purchased plus I have earned $23.58 in Best Buy rewards. Once I get my Best Buy rewards in the mail I will sell these gift cards for a total approximate profit of $35. That brings this deal to $187 in profit!! I’ve broken it down a little more clearly below.
Cost of $200 BestBuy.com gift card = $160
Bing.com Cashback on Gift Card Purchase – $12.80
Discover Credit Card Rewards on gift card purchase – $1.60
Cost of Gift Card = $145.60
Normal cost of Apple iTouch at BestBuy.com (including tax & shipping) = $196.87
Mr.Rebates Cashback on iTouch Purchase from BestBuy.com – $8.94
Final Cost of iTouch = $136.66
Average resell price of iTouch on Ebay = $175
Ebay fees – $7.59
Paypal fees – $5.38
Net payment from Ebay sale = $162.03
$162.03 (Ebay sale) – $136.66 (Cost of iTouch) = $25.37 in profit!!
Congratulations if you stuck through this entire post. This process can easily be replicated with other items on BestBuy.com, just make sure you first do your research on which products can be resold at a profit. Not all products have a high resale value on Ebay. I’m making thousands of dollars simply buying products on Target and reselling them on Ebay and Craigslist and you can too!
Good luck Penny Hoarders!
Update 2011: Unfortunately, Bing rewards has ended.