Can you explain this ebay auction to me?

[disneysteve]

Well, I listed a $30 Amazon certificate. It doesn't end for 5 days but does have a bid of $24.99 so far. I certainly won't be upset if it goes for more than face value as that would cover my selling fees.

[jasonnoguchi]

Well, I listed a $30 Amazon certificate. It doesn't end for 5 days but does have a bid of $24.99 so far. I certainly won't be upset if it goes for more than face value as that would cover my selling fees.

Maybe you still don't get it like some of the others already do... whoever buying it from you at higher than your price is going to ask for his/her money back after using it, got it?

[jasonnoguchi]

ummm...... use the code, then "return" it for your $143 back? if that's possible, it definitely makes the most sense....

Possible? its 100% workable. Paypal will get you your money back in a jiffy when you file a claim.

[disneysteve]

Maybe you still don't get it like some of the others already do... whoever buying it from you at higher than your price is going to ask for his/her money back after using it, got it?

Actually, I've sold quite a few gift cards on ebay. None have sold for more than face value but all have sold for close to face value, sometimes within a few cents of face value.

Do a search of completed gift card auctions (there are thousands) and you'll see that almost all sell for very close to face value. I'm not saying there can't be some scams out there but I know they aren't all scams because I've done it many times myself and know others who have, too.

[myrdale]

I messaged the seller on eBay who had that card. I asked why the card would have a value so much greater than the face value. His answer...

He THINKS the buyer may have had his account hacked. The hacker used the stolen account to purchase the card.

I will say that is not outside the realm of possiblities. To the seller atleast it, past fraud, it doesn't make sense to him either.

[disneysteve]

myrdale, that's interesting but if you look, there are hundreds of gift card auctions that end above face value. I find it very hard to believe that they are all fraudulent.

The bing cashback answer certainly makes sense. I also know there have been other rewards deals over time that could explain it. I know ebay itself has sometimes offered a "coupon" to get $10 off any purchase. That would make paying face value or a little more still a good deal. Add in rewards credit cards and you could stack bonuses to save some money. One of my credit cards is currently giving 5% cashback on all online purchases, for example.

[jasonnoguchi]

@Disney - Yes, if your gift cards are being sold at lesser than par, it is ok, whoever buys it from you are most probably sincere buyers. I am addressing the issue of gift cards selling off at above par, which hadn't happened to you yet. Whoever buys gift card codes for way higher than par (46% higher than par definitely don't fall within the category of cashback savings) definitely have something up their sleeves and the most logical would be a return after use.

[disneysteve]

My auction just ended. My $30 GC went for $33.11, a bit over face value but within the realm of someone using a cashback offer or ebay coupon to make it worthwhile. Buyer has good feedback. If anything bad happens, I'll report back.

[SnoopyCool]

Laundering money, perhaps?

[disneysteve]

Laundering money, perhaps?

How? They're not paying with cash. They're paying through Paypal, so the money is already in the system and on the books.

[creditcardfree]

Steve, I wonder if an email to your buyer questioning their bid over face value would provide specific insight. I think the cashback offers and promotions do lend themselves to increased bids.

[disneysteve]

Steve, I wonder if an email to your buyer questioning their bid over face value would provide specific insight. I think the cashback offers and promotions do lend themselves to increased bids.

I'll do that once he pays and let you guys know if he responds.

[visitor]

Any news?

[disneysteve]

I actually ended up canceling the auction because the winner didn't respond. I need to do a second chance offer but forgot about it. I'll do it this weekend.

[Joan.of.the.Arch]

I'm still puzzled over this. However, I bumped into an auction (among the Walmart gift card auctions) offering to sell for $0.35 information on how to get 36% of the seller's fees. I only skimmed the explanation, but after seeing Bing and Microsoft mentioned, I googled (sorry, bing!).

I found this curious page, which, if legitimately an ebay page, does seem to confirm that a buyer can get a portion of the seller's fees.

eBay

However, it is up to ebay to determine how much of the seller's fees you will get and it looks like you will not know how much until you are checking out....That could also explain buyers backing out--they may not like the cashback ebay has determined they can get.