Today I'm happy to announce we've added a third data feed: Giftcards.com. This is great because it means more options for consumers who visit ScripSmart. Naturally, we still offer the ability to buy direct from the merchant and in fact, that's just what most people do.
However, there are times when leveraging the secondary market for discount gift cards makes sense. I see them as a great way to save money on places your frequently visit. For example, I love Outback Steakhouse and there is typically a steady supply of discount Outback gift cards available for purchase. It's something I would buy not to give a friend, but to save money at aplace I will likley visit anyway.
Tips For Buying Discounted Gift Card
The secondary market can get a bit tricky when buying a gift card for a gift. There are a few thins to consider before making a purchase.
Buy from a reputable source
All three of ScripSmart's data feeds are quality players in the space: they offer free shipping, transaction guarantees and have proven themselves in the space. Those companeis are Giftcards.com, Plastic Jungle and Cardpool.
Find a balance you can tolerate
Frequently, gift cards available for sell on the secondary market have some funky balances. For example, it might seem a bit odd to the person you give a gift the card with a balance of $56.23. While one can still spend the value the same as any ol' $50.00 gift card, your recipient might feel they are getting re-gifted something I'd argue is still not socially acceptable.
Understand They Are Not All Gift Cards
Perhaps one of the most tricky things to consider is what type of credit you're actually buying. I've see this fall into three categories: gift cards, merchandise credits and gift codes. Here's a quick run down of each:
* Gift cards - these are what you expect.
* Merchandise credits - while not a gift card, they will likely function the same way. Only be labeled differently.
* Gift codes - they are basically, just the gift card or merchandise credit number. One benefit is they are delivered to your inbox rather quickly. They downside is they can often only be redeemed online.
How Do They Get Discounted Gift Cards?
I was telling a friend ScripSmart was integrating with another provider who offered discounts on gift cards and they asked a very normal question: How does the supplier get discounted gift cards?
They answer is simple: they buy them from consumers who decide they would rather have a fraction of the gift card's value in cash. For example: the outback gift card is offered at 10% off. However, if you want to sell an outback gift card you will receive 81% (19% off) of the value in cash. In this case, company would take the 9% spread as a profit.