plasticjungle
Joined: 07 Sep 2010
Posts: 1
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| Posted: Tue Sep 07, 2010 3:53 pm Post subject: Better seller economics for Amex users |
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Hi PSU -
I wanted to introduce Plastic Jungle to the group - we're a gift card marketplace that buys and sells gift cards (i.e. more StubHub than eBay - we're the marketplace and the seller).
We just completed a test with a high-volume eBay / Half.com seller who buys a lot of their inventory using an American Express card. The results were very positive - we were able to add $8,400 in net profit for every $1 M in inventory purchased. The seller converts the Amex Membership Rewards points to gift cards at a 100:1 ratio and then sells us the cards (the rates vary based on brand of card). For each $1 M in inventory, the seller was able to convert the 1 M rewards points (1:1 ratio between $ spent and points earned) into $10,000 in Home Depot cards, which Plastic Jungle bought for 84% of face value, or $8,400.
Now that we've completed the test, I wanted to make other large e-commerce sellers aware of this opportunity. The economics would be similar if you use a different rewards card. If you have any questions about the results or how we might be able to help you do something similar, you can post a reply or reach me directly at walt@plasticjungle.net. |
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