Kohl’s may be an over-used example for reselling, but I haven’t really seen a whole lot on it of late, so I thought I’d stoke the proverbial fire. Its not nearly as valuable as it used to be, but, there is still a lot of value to be had here. Especially relevant is that Kohl’s is offering a 30% off coupon with Kohl’s Credit Card and Kohl’s Cash right now. The 30% off code is Toast30, courtesy of Are We There Yet.
Reselling in general involves certain risk. You may buy something and find that the price that it was going for on Amazon has dropped. Worse, you might find that Amazon itself is selling it (which makes it more challenging to get the buy box). You might lose money. Maybe you’re okay with that? Maybe you’re not. The conversion time from when the purchase hits your credit card to when Amazon transfers the revenue in may very well be more than a single credit card billing cycle. I could go on, but I think you get the picture. One worse piece – I have heard of folks being shut down by Kohl’s, being pegged as a re-seller. I haven’t heard of many folks, but none-the-less, it is an important data point.
In order to provide a good picture of the opportunity, I thought I’d use an example of product that used to work really well for me.
Kohl’s sells it for the same price. You might say — well, if Kohl’s is selling it at the same price, then why bother? Ah, but you aren’t including discounts and Kohl’s Cash.
First we start with what shopping portal to go through:
I know – we’ve come a long way from Chase Ultimate Rewards’ Portal offering 10x (and being able to double dip with gift cards). But, for the sake of argument, let’s go with 5% cash back via the Shop Discover Portal.
Next we proceed through the purchase at Kohl’s. For the sake of avoiding shipping costs, I’ve got 2 Nutribullets in my shopping cart.
So here we have a total of $133.54. Lets add in the 5% cash back through Shop Discover, and account for the $20 Kohl’s Cash (which I conservatively value at ~70% of face value).
If divide that by 2, you get $56.43 per unit. If you were to sell that at $89.99 (the going price on Amazon), you would net $70.03, essentially a 24% margin less shipping (which, in my experience, can be in the range of $4-7).
For extra credit
If you want to further bolster your margin, you could purchase Kohl’s Gift cards, at anywhere between 5% (Chase Freedom/Chase Ink), all the way up to 16-30% off via GiftCardGranny.
This is just a quick case study, but hopefully this is useful for your consideration when reselling. There are lots of great opportunities out there. I’ll cover some other resources to ensure profitability in a follow-up post.