A couple of months ago I blogged about getting 10x Aeroplan points for purchases on ebay.ca. That promo lasted for just a week, and many people were reluctant to jump on this deal either because a) They live in the U.S. and were not sure if they would receive the points from eBay Canada, or b) They just don’t have an Aeroplan account, so the few points they would earn were useless to them.
Let me start by dispelling a few myths. First, I purchased four items on eBay.ca through this promotion and received 10x points for all my purchases. I purchased $200 in gift cards to places that I expected to spend money at anyway, like Starbucks, so this was a complete no-brainer. Second, Aeroplan miles can be very valuable, even a low redemption rate. For instance, you can get a free 1 year Gold Costco Membership for only 6,500 miles (worth $55).
To sweeten the deal even further, I bought eBay gift cards using my Amex Gold Business Rewards account to get 5% cash back on purchase over $100 through the Amex OPEN Business program. However, I know many readers don’t have an Amex Gold Business card, so I recommend using the Chase Freedom card to buy eBay gift cards at the grocery store where you can earn 5% cash back this quarter (April 1 – June 30).
Finally, eBay also has a rewards program called eBay Bucks where you earn 2% cash back (via eBay bucks credits) for all purchases on eBay.
Unfortunately, the 10x Aeroplan miles promo ended on March 29th, however there is a new promotion where you can earn 5x Aeroplan miles for all eBay.ca purchases between May 24th and May 28th.
Now, let’s see how sweet this deal can be!
1 – Buy $100 in eBay gift cards at the grocery store using your Amex Gold Business Card card and get 5% off, or $5 back (actually its $4.50 in this case because I’m spending just $90, not $100). Remember you can substitute the Chase Freedom card here.
2 – Buy $100 Starbucks gift card on eBay for $90 (I’ve found they usually sell for between an 8-10% discount off face value)
3 – Link through Aeroplan mall and get 5x miles on your $90 purchase = 450 miles (1.5 cents per mile x 450 miles = $6.75 back)
4 – Get 2% back in eBay Bucks = $1.80
5 – Get 100 Amex Membership Rewards points for spending $100 on my card (1.5 cents per point x 100 = $1.50)
In total I received a $100 gift card to Starbucks for $90 – $4.5 – $6.75 – $1.8 – $1.50 = $75.45
I just received almost 25% off any purchase at Starbucks! Keep in mind that you can do this for any retailer where you can find gift cards for sale at eBay. In addition, this deal could get even better if you purchase the gift cards with your Chase Freedom and then convert those Ultimate Rewards points into United MileagePlus miles, which are worth 2 cents per mile, thereby increasing your discount to almost 30%!