How and Where to Sell Gift Cards in Canada: Seller Guide

Gift cards have become one of the most popular e-commerce products in Canada. Their demand has steadily increased, with a significant surge during the COVID-19 lockdowns. According to available data, the Canadian gift card market was valued at approximately USD 46.51 billion in 2023. It is projected to grow to an estimated USD 101.75 billion by 2032, with an impressive compound annual growth rate (CAGR) of 9%. These statistics underscore the expanding popularity and potential of the gift card market in Canada.

But why should you care about this rising demand for gift cards if you don’t personally use them? The answer is simple. By tapping into this booming market, you can turn gift card sales into a profitable side hustle in Canada. To succeed, you must be well-informed about the most effective platforms and strategies for selling gift cards. In this article we will guide you through the intricacies of the gift card market, including where and how to sell gift cards in Canada efficiently, and the dos and don’ts of the trade.

Understanding the Gift Card Market in Canada

As previously mentioned, the gift card market in Canada is experiencing rapid growth. Increasingly, consumers are turning to gift cards for their everyday digital purchases. Moreover, gift cards are particularly popular as gifts, often given to loved ones during special occasions. Consequently, sales peak during holiday seasons, highlighting their significance in festive shopping trends.

Most popular gift cards in Canada

In Canada, some of the most sought-after gift cards include those from Amazon, Home Depot, Starbucks, Walmart, Best Buy, Sephora, and Uber. Due to their popularity, these gift cards tend to sell more quickly compared to others, making them an ideal choice for sellers aiming to meet consumer demand efficiently.

How to Sell Gift Cards in Canada: Your Options

Online Marketplaces:

There are several methods to sell unwanted gift cards, and one effective approach is using an online marketplace. By registering with an established gift card marketplace, you can quickly set up your business on their platform. This option offers significant advantages: the marketplace already attracts numerous daily customers looking to purchase gift cards, which enhances your chances of success. Additionally, you won’t need to invest in creating your own website or establishing a physical store. Simply sign up, and you can begin selling your gift cards immediately.

BuySellVouchers.com

Overview of BuySellVouchers.com

One of the leading online marketplaces for trading digital gift cards is BuySellVouchers. Having been in operation for 12 years, this platform has built a strong reputation by serving thousands of satisfied buyers and sellers. It is recognized as a safe and trusted venue for both gift card sellers and buyers. At BuySellVouchers, creating a seller account is free and can be done instantly, allowing you to establish your business and start selling within minutes. Popular gift cards on this platform include Razer Gold, Steam, PlayStation, Xbox, Nintendo, Garena Free Fire, Valorant, Fortnite, Mobile Legends,Roblox, Amazon, and iTunes, among others. Additionally, BuySellVouchers stands out as one of the few gift card exchange platforms that accept cryptocurrencies, including Bitcoin and Tether TRC20 (USDT), as payment methods.

How to list vouchers on BuySellVouchers.com

To list gift cards for sale on BuySellVouchers, you must create an account on the site. To create an account on BuySellVouchers, click on the Register button at the top.

After that, you can either Sign Up using your existing Google account or alternatively create your own unique BuySellVouchers account by entering a valid email address, a username and password.

After you input your details and click on the Sign Up button, you will then be asked to verify your email by clicking on the link you just received in your email address. Do that and you’re all good to go.

You can now finally list your product for sale. To list a product for sale on BuySellVouchers, follow these steps:

1. Click on Account preferences from your profile.
2. Go to the Profile tab.
3. Click on the Start Selling button.
4. Complete the verification and then go to the My Products tab.
5. Click on My Products.
6. Select Add New Product.

Pros and cons of selling on BuySellVouchers

The positives of selling on BuySellVouchers is that the platform charges sellers only a 1% commission fee from the sale. This is an incredibly generous amount where some other popular platforms can charge their sellers fees of up to 12%. BuySellVouchers also has a large number of repeat buyers that always choose to buy from BuySellVouchers so you have a better chance of grabbing an order.

The cons of selling on BuySellVouchers are that you are entirely dependent on the platform to run your business. If you break the Terms of Service or if the platform unexpectedly went down, your business would go down with it. Another disadvantage is that you do not have the creative freedom that you do when running your own physical gift card storefront.

Physical Stores:

Selling your gift cards to a local retailer with a physical storefront is another viable option. Retailers are often eager to expand their inventory and may be interested in purchasing gift cards in bulk from you. One of the key advantages of this method is the opportunity to build trust through face-to-face interactions with the retailer.

Gift Card Exchange Kiosks:

You can also convert your gift cards into cash at a gift card exchange kiosk. These kiosks function similarly to ATMs; however, instead of depositing credit cards, you insert gift cards and receive cash in return. Gift card exchange kiosks are commonly located near popular grocery or department stores. 

You can easily find the nearest kiosk using Google Maps. Here’s how to use a gift card exchange kiosk:

1. Insert the gift card you wish to sell into the designated slot on the kiosk.
2. Wait for the kiosk to process and scan your gift card.
3. The kiosk will present two options on the screen: either exchange the gift card for its discounted cash value or swap it for a gift card of equal or lesser value from another retailer.
4. Choose your preferred option. If you opt for cash and the kiosk dispenses a voucher, simply exchange this voucher at the store’s counter to receive your money.

Peer-to-Peer Platforms and Gift Card Exchanges:

Another method to trade gift cards for cash is by leveraging social media and online forums to find potential buyers. This approach tends to be slower and more labor-intensive, as it requires you to actively search for and directly engage with buyers. Additionally, selling gift cards in this manner carries a higher risk of fraud, so it’s crucial to proceed with caution and consider secure transaction methods. Some trading groups of this type can be found on Facebook and Reddit.

How to Prepare Gift Cards for Sale

Checking balance and ensuring validity

Before listing a gift card for sale, verify that the balance matches the face value. Make sure the gift card is unused and holds full value. For instance, a $25 voucher should indeed have a $25 balance; any discrepancy could lead to dissatisfaction from the buyer. Additionally, ensure the gift card has not expired and is valid for use. In the event that you mistakenly deliver a gift card that is either expired or devoid of funds, promptly address the issue with the client by offering a replacement to prevent a negative review.

Understanding fees associated with different selling platforms

Different gift card trading platforms impose varying fees. While some may charge minimal fees, others might offer fee-free services. Therefore, it is prudent to research and select a platform that charges low seller commission fees when selling unwanted gift cards.

Tips for setting prices competitively

When selling a product, pricing is a crucial factor that can significantly influence the success of a transaction. It is essential to set a price that reflects the product’s value, enticing potential buyers while remaining competitive. Conduct thorough research to understand the pricing landscape—examine what prices other sellers are setting for similar gift cards. This insight will allow you to determine a competitive price that not only ensures a profit for you but also respects the buyer’s budget.

Legal and Safety Considerations

Legal aspects of selling gift cards in Canada

When selling gift cards in Canada, it’s important to adhere to specific regulations. Sellers are prohibited from charging fees that diminish the card’s value, such as maintenance or activation fees. Additionally, all pertinent information, including any applicable fees or expiry dates, must be clearly disclosed to the buyer before the sale.

How to avoid scams and fraudulent transactions

To prevent scams and fraudulent transactions when selling gift cards, always secure payment from the buyer before dispatching the product. Verify that the payment has been fully processed and deposited into your account. Never deliver the gift card until you have confirmed receipt of the funds.

Ensuring personal and financial data security when selling online

When selling vouchers online, never disclose personal or financial information to buyers. The sole purpose of your interaction should be the exchange of gift cards. If a buyer requests any additional information that seems unnecessary, it is prudent to decline their request.

Maximizing Profits from Selling Gift Cards

Best times to sell gift cards

Gift cards, as their name suggests, are often given as gifts instead of cash due to their convenience and ease of use for purchases. This is particularly evident during holidays when people buy gift cards in Canada for family and friends. During these peak times, it’s crucial to ensure your business stands out from the competition. Staying active and visible can help you attract more buyers and significantly increase your profits.

Bulk selling vs. individual selling: which is more profitable?

Many new sellers often debate whether to pursue bulk selling or individual selling. To help you decide, let’s explore the advantages of each approach. Bulk selling typically offers higher overall profitability, especially when you attract buyers with discounts on large orders. This method allows you to earn significant profits quickly, though managing numerous bulk orders can be challenging. On the other hand, individual selling yields higher profits per card (ROI) since you don’t need to provide the discounts required for bulk deals. However, this method is slower, and it may take longer to see substantial earnings. Despite this, individual orders are easier to manage and less cumbersome than bulk transactions.

Understanding buyer demand for different types of gift cards

Many buyers are interested in a diverse array of gift cards. For instance, a regular customer who initially purchases only Xbox gift cards might later be drawn to other types, such as iTunes gift cards. Limiting your inventory to just a few varieties can hinder your ability to attract a broad customer base. To build a successful gift card business, it’s essential to stock a wide selection of gift cards. This strategy ensures you can meet the varied needs of different buyers, enhancing your market reach and sales potential.

Final Words

If you have decided to embark on your gift card selling journey in Canada, we advise you to choose your online platform for selling or exchanging gift cards wisely. Choose a platform that not only charges the lowest seller fees and is secure but also perfectly fits all your personal needs.

Note that the article serves only as introductory material to provide an overview of the gift card trading sphere. To succeed, you will definitely need to conduct more in-depth research and create a well-structured business plan. As you embark on this exciting venture, remember that the landscape of gift card trading is ever-evolving. Staying informed and adaptable will be key to navigating this dynamic market successfully. We hope this article has sparked your interest and provided a solid first impression about the gift card trading sphere.

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