Why do gas cards on eBay sell for more than face value?

EarlyPorsche · 11-08-2010, 03:14 PM

Gas cards on eBay sell for more than face value...

gas card items - Get great deals on Collectibles, Sports Mem, Cards Fan Shop items on eBay.com!

Rick Lee · Rick Lee's Garage

I think it's just free advertising for them. Why does some guy with 1000 of the exact same item create 200 listings for them, when he could do it with one and just list the quantity available? Lots of things on eBay are more expensive than with any other online source. I've sold used stuff on there for way more than anyone should pay for it.

EarlyPorsche · 11-08-2010, 03:22 PM

Free advertising? I don't follow what you mean.

Rick Lee · Rick Lee's Garage

Same reason lots of car dealers put ads on there for more than the car will ever sell for. It's the cheapest online advertising you can get and on a site with ridiculous traffic. Put a no reserve auction up there for 20% more than actual value and your fees are minimal, even less if you have an eBay store. Maybe not free, but close to it.

EarlyPorsche · 11-08-2010, 05:32 PM

This makes no sense to me. Are you saying that there are company insiders bidding the product up past its face value for "advertisement" reasons?

legion · 11-08-2010, 05:35 PM

No, he's saying they never intend to sell on eBay, just advertise the product.

I can't help but wonder if it's a really easy way to launder money...

Steve Carlton · 11-08-2010, 07:25 PM

Gas gift cards cost more than face value directly from the oil companies. They're popular as gifts and have high value compared to other products. There's obviously a cost to produce them, so they sell for more than face. It's the convenience value.

OTOH, other gift cards can be purchased at a large discount. I've bought Callaway gift cards for 40-50% of face value and used them on their website. For things like the latest golf clubs where there's no significant discount to be had, it works out really well.

EarlyPorsche · 11-09-2010, 04:10 AM

I still don't understand why a consumer would spend $155 on something they could have for $150. Convenience doesn't matter because you can buy a gift card with the same money you buy it with on ebay.

whiskyb · 11-09-2010, 04:15 AM

Here in Canada we have a auto parts store called Canadian Tire. They give out Canadian tire money based on your purchase amount. People sell it on e-bay for more than it is worth. I have sold some personally and received just over $11 us for $10 worth of Canadian Tire money.

The only reason I can see for it is people trying to raise their feedback numbers for little cost

Teutonics · Teutonics's Garage

If I had to guess, there is probably some type of "incentive" attached to the cards for the retailer, which drives the price higher than face value.

I know this is the case with baby formula "checks", which also sell for more than face value on ebay. What happens is grocers (e.g. small non-corporate convenience stores) buy the checks at a price higher than face value, but lower than what they receive from the manufacturer, and submit them for refund. It's free money for them...

EarlyPorsche · 11-09-2010, 05:17 AM

Quote:

Originally Posted by Teutonics

If I had to guess, there is probably some type of "incentive" attached to the cards for the retailer, which drives the price higher than face value.

I know this is the case with baby formula "checks", which also sell for more than face value on ebay. What happens is grocers (e.g. small non-corporate convenience stores) buy the checks at a price higher than face value, but lower than what they receive from the manufacturer, and submit them for refund. It's free money for them...

Ah ha! This is getting much much warmer!

Steve Carlton · 11-09-2010, 05:48 AM

Go here and see what happens when you go to checkout with a gift card.

rnln · 11-09-2010, 09:42 AM

Maybe it's the way you advertise/Descibed? What is your ebay name, so I can learn from you?

Quote:

Originally Posted by Rick Lee

I think it's just free advertising for them. Why does some guy with 1000 of the exact same item create 200 listings for them, when he could do it with one and just list the quantity available? Lots of things on eBay are more expensive than with any other online source. I've sold used stuff on there for way more than anyone should pay for it.

Rick Lee · Rick Lee's Garage

ricklee1200, but all I have up there now is a used tank bag. I ask top dollar for everything and almost always get it. I never pay it though. Lots of people just don't want to bother shopping around. I like shopping around.

TerryBPP · 11-09-2010, 12:55 PM

Quote:

Originally Posted by Rick Lee

Same reason lots of car dealers put ads on there for more than the car will ever sell for. It's the cheapest online advertising you can get and on a site with ridiculous traffic. Put a no reserve auction up there for 20% more than actual value and your fees are minimal, even less if you have an eBay store. Maybe not free, but close to it.

Not saying the above is not true but most high priced cars from dealers on ebay are real! They just have no concept of market value, do not do research or they own the car for too much. No reason for them to advertise a car that is ridiculously expensive, negative press if anything.

Rick Lee · Rick Lee's Garage

I understand the ads are real in that the dealer will be overjoyed to complete the transaction for their super high reserve. Who wouldn't? I mean that they probably don't hold out much hope of selling the car via eBay. There are plenty of high-end car dealers I would have never ever heard of if not for their eBay ads. So they do tend to get national exposure for very minimal fees. Remember the old California Classics eBay ads with the skanky goth chick on the cars? How else would I have learned of them while living on the east coast? Ditto for Premier.