Why do used gift cards on Ebay sell for so much?

[Ametista]

I have seen a set of 4 4-day MYW hopper plus waterpark option tickets sell for a lot more than you can get them on Undercover Tourist. I was pretty shocked. Apparently some people only go by Disney's official prices and anything less is a bargain.

I quit trying to get people's Ebay rationale a long time ago. The gift cards thing is just weird though.

 

[lost*in*cyberspace]

Ok this is the best answer I came up with so far-they are using ebay bucks to purchase the cards. The ebay bucks expire and they can only use them on ebay so instead of purchasing more stuff-they get gift cards. Still seems dumb to pay more than the face value. Seems to me that the only people making money off it would be ebay itself because even the seller would not make much after paying ebay fees. However, cash is still better than a card collecting dust.
The other reasons seem to all add up to the fact that a sucker is born every minute.
Various answers seem to be
1. People actually collect gift cards (the different pictures on them)-Whatever
2. People think that if they buy them from a 3rd party that the gift card is not traceable (not true-in fact gift cards are fairly easy to trace)
3. People use it as a strange form of money laundering (not sure how that works but again they are traceable)
4.

I doubt using eBay bucks is correct, because this issue of gift cards selling at or above face value on eBay has been going on long before eBay bucks were introduced.

How exactly can a gift card be traced? I buy a gift card using cash; no way can you trace this.

 

[JKMJ441724]

on a tangent....


I've looked for Disney tickets on ebay and see where the bids are just dollars away from what a person could buy them for direct from Disney.

Like others have said - if I'm going to pay full price or 97% of the full price, I'm going to get my stuff directly from Disney and avoid the risk altogther.

 

[writersblock42]

Gift cards have a unique number in the magnetic strip and they use those to trace the gift card. Exactly who originally purchased the gift card is not known unless purchased with check or credit card but they can actually tell down to the second at what time the card was purchased and from which register. Then they can tell each and every time you used the gift card, what you purchased on the gift card and exactly when and where.

 

[lost*in*cyberspace]

Gift cards have a unique number in the magnetic strip and they use those to trace the gift card. Exactly who originally purchased the gift card is not known unless purchased with check or credit card but they can actually tell down to the second at what time the card was purchased and from which register. Then they can tell each and every time you used the gift card, what you purchased on the gift card and exactly when and where.

Okay, but you still cannot trace the card to the person using it and that was my point.

If you do a Google search on this thread's topic, you will see the issue discussed all over the Internet.

 

[richmond282]

This also happens with coupons, people will pay 9.75 PLUS shipping for 10 $1.00 coupons. It's nuts!

If you have a local grocery store that doubles coupons, though (a lot do up to $1.00) then those people are still saving $.

 

[EMAW_KSU]

I have bought a number of gift cards on Ebay mostly Home Depot. I use phantom bidder and enter my max bid at 85% of the value. I stopped trying to purchase Disney they always go for value +.

 

[sweetpeakaris]

I guess for cash back?

 

[ArcticCat]

I have paypal cash "cards" that I can use for anywhere paypal is accepted, but I can not cash them out and withdraw that money. I have no idea why people did it before paypal cask or ebay bucks, but I do know I have thought about it for Disney cards for our upcoming trips.

 

[Iowajes]

I saw a documentary about the emotions of money and investing. A professor ran a study with multiple classes, he would auction off a $20 bill. The highest bidder would get the $20 bill however the second highest would have to pay the professor their bid. Slowly the auction crawled up to the $20, the quickly spiraled up higher and higher between two bidders. Neither wanted to loose both wanted to win. I believe when finished the bid was close to $80.

This doesn't seem to be a valid comparison because there is disincentive when losing. If I don't get something on ebay, I'm bummed I didn't get it (and I do agree people want to WIN, but not in the same way.)

The 2nd place person was MORE motivated to win because they would be out the money with or without the win. That doesn't happen in a real auction. So for the "winner" that $20 bill that cost $80 had a value of -60; but for the loser, participating in the auction had a value of -79. Losing cost more than winning does. It isn't a real life situation.

They weren't just bidding to win, they were bidding to lose less money than the other person still in it. So to me, that is more valid than just wanting to win an object at all costs.

 

[lost*in*cyberspace]

This doesn't seem to be a valid comparison because there is disincentive when losing. If I don't get something on ebay, I'm bummed I didn't get it (and I do agree people want to WIN, but not in the same way.)

The 2nd place person was MORE motivated to win because they would be out the money with or without the win. That doesn't happen in a real auction. So for the "winner" that $20 bill that cost $80 had a value of -60; but for the loser, participating in the auction had a value of -79. Losing cost more than winning does. It isn't a real life situation.

They weren't just bidding to win, they were bidding to lose less money than the other person still in it. So to me, that is more valid than just wanting to win an object at all costs.

Did you notice that this thread is from 2 years ago (don't know why it was bumped)?

 

[Iowajes]

Did you notice that this thread is from 2 years ago (don't know why it was bumped)?

Nope, sure didn't. Only noticed it was on the front page.

 

[Ranger111]

Seems that many things on EBAY sell at or above what I can pay at local stores.

Norelco replacement razor heads always seem to sell about $6-$10 more than I can pay at a local store.

Various auto filters (air, cabin, oil) seem to sell for more than I pay at the local NAPA for the same brand.

So, I pretty much have given up EBAY auctions unless it is a totally unique item.

I still do Buy It Now if the price is reasonable. And I really like "Make an Offer" since I seem to do quite well on that most times -- 40-50 percent savings.

But, I just think that people get caught up in it as others have said.

Just bought a $25 LLBean gift card for 20 percent off at my longtime online gift card discounter....sure I would have paid close to full value or more on Ebay.