Plastic Jungle Creates Gift Card Marketplace
ManagingMoney.com came across an innovative way to save a little money at major retailers when we discovered Plasticjungle.com. Plastic Jungle is a leader in the relatively new Gift Card Exchange Marketplace. Similar to EBay’s auction process, Plastic Jungle allows their users to buy and sell gift cards, trade pre-owned gift cards, and sell gift cards immediately for “quick cash”. Future plans include a feature in which you can donate unused amounts on gift cards to charity.
Now, we are the first to admit that trading gift cards is not going to make someone rich overnight, but nevertheless why not save a little money now and then when you shop. How many of us have unused gift cards in our wallets or purses, or gift cards with small amounts remaining that we never use?
Basically, the way it works is that the consumer goes to the site and registers online, regardless if they are buyers or sellers. Registration is necessary to provide a secure and honest environment so buyers and sellers can be comfortable doing transactions. Currently both buyers and sellers are required to have a PayPal account to facilitate the actual exchanging of funds. Plastic Jungle’s Privacy Policy currently states that they do not sell name, demographics, or contact information to any third parties.
Buyers can purchase gift cards at ~90-95% of the cards’ remaining value with Plastic Jungle keeping the difference. For example, a consumer could purchase a $100 Home Depot gift card for $90.
Sellers can sell whatever gift cards they have in the range of ~60-75% of the cards remaining value for a flat fee of $3.99 for each card listed regardless of value.
Surprisingly, a gift card exchange is fulfilling a major market inefficiency for retailers. As a consumer, the benefit and savings are obvious. However, for retailers, “gift card accounting” for unused cards has posed a major problem. When a company has unredeemed gift cards, the total is listed as a liability on the balance sheet and they are not able to show it as revenue until the card is redeemed. On top of that, state and federal authorities are phasing out expiration dates on cards meaning the retailer may be stuck with this accounting issue for years. Anything that causes the velocity, or use, of gift cards to pick up will be a benefit for retailers.
So, with Christmas right around the corner we suggest you re-visit those gift cards in your wallet and go to Plasticjungle.com. To find other ways to Save Money, be sure to visit the ManagingMoney.com Expenses Center. Here you will find online and in-store coupons, calling cards, ways to save on educational expenses, and much more. ManagingMoney.com will continue searching for more innovative ways to help you save money, so keep reading our blog.
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