“How I Earned Nearly 500,000 Points Selling 180+ Sewing Machines on eBay”

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Lots of folks ask me the best ways to continuously collect credit card miles & points after you’re done earning a new card’s welcome bonus.  Unfortunately, many of the “easy” ways to generate rewards are no longer available, like loading a Target prepaid REDcard.

But with some creativity, there are a few strategies to boost your miles balance for Big Travel with Small Money!  One successful method that’s worked for Million Mile Secrets team member Keith is selling products on eBay in his spare time.  I’ll let him tell you about it!

Drop Shopping For Credit Card Miles
A Unique Niche on eBay Helps Team Member Keith Earn Hundreds of Thousands of Points!

Keith:   Selling my old stuff on eBay has always been a side hobby of mine.  But a few years ago, I discovered a way to use the eBay selling platform to make extra money and generate a ton of miles & points.  And it’s nearly risk free!

The secret is drop shipping, which is also known as product sourcing.  This is a fancy way of saying I purchase products online and ship them directly to someone who buys it from me on eBay.  It’s basically like online shopping for other people.

Using Drop Shipping to Generate Miles & Points

In my experience, many folks get used to doing their online shopping at a select number of websites.  For example, I typically go to Amazon.  If the product I’m looking to buy is available for a reasonable price, I’ll just make the purchase without doing much research.

But there are so many online retailers that shopping around could save you money on your purchases!  That’s how I discovered drop shipping.

A few years ago, I stumbled across a deal to buy a sewing and embroidery machine on Amazon for a steep discount.  I don’t personally sew, but I’m always looking for products I can buy and resell.  Since discovering the deal I’ve sold more than 180 of these ~$350 machines!

Drop Shopping For Credit Card Miles
I Could Have Never Imagined I’d Be Selling Sewing Machines on the Side, but I’m Not Opposed to Easy Ways to Generate Profits and Miles

The key to drop shipping on eBay is finding the best deal for the product you’re selling.  I’ve had success with sewing machines, but you can follow the below steps for any product.  Keep in mind, eBay specifically says it’s acceptable for sellers to drop ship.

Step 1.   Research and List a Product for Sale on eBay

The best part about product sourcing or drop shipping is you don’t need to have an inventory of products.  I’ve never even seen the sewing machine I’ve been selling on eBay because I ship it directly from a supplier to the buyer.

Drop Shopping For Credit Card Miles
I’ve Generated Consistent eBay Sales Using Drop Shipping

So as long as you can guarantee an item will be delivered within 30 days of purchase, you can list ANY eligible product for sale on eBay.  Then, wait for someone to buy it from you before you purchase it from a different online retailer for a cheaper price.

Step 2.   Fulfill Your Order by Purchasing Directly From Another Online Retailer at a Lower Price

This is the most important step.  After your product sells on eBay, you’ll want to find the best deal for the same item at another online retailer.  Then, purchase from that retailer and ship the item directly to the buyer on eBay.

There are many online shopping tools that can help you find the best price.  I typically use Google Shopping.

Drop Shopping For Credit Card Miles
Google Shopping Is a Terrific Online Shopping Tool Whether You’re Drop Shipping or Just Want to Find the Best Deal on a Purchase for Yourself

Note:   Certain online retailers will cancel your order or close your account if they suspect you’re only making purchases for resale purposes.  I learned this the hard way when Jet.com closed my account.  So it’s important to read the terms & conditions when shopping online if you’re drop shipping.

Before you get started with drop shipping, you’ll want to invest time to research prices for the product you’re selling to ensure you don’t lose money.  For example, you should consider taxes & fees when determining the price you select to list an item.  I recommend starting slowly and developing a process for fulfilling your orders.

I like eBay because you can quickly adjust your prices.  So you can continuously monitor prices at other online retailers and adjust your selling price accordingly.

Step 3.   Shop Through Online Portals to Generate Cash Back or Bonus Miles & Points

Drop shipping allows you to easily generate credit card miles & points.  Because you’re purchasing a product on your credit card that’s already been sold on eBay.  So you have the money from your sale to quickly pay off your credit card balance.

But you can supplement the rewards you earn by adding one simple step.  When you’re fulfilling your order, I recommend using a shopping portal.

I typically use TopCashBack or the Chase Ultimate Rewards shopping portal.  For example, I recently took advantage of a promotion to earn 10X Chase Ultimate Rewards points at Walmart when fulfilling an eBay order.

Drop Shopping For Credit Card Miles
Take Advantage of Bonus Earning Opportunities Through Shopping Portals to Multiply the Rewards You Earn!

Stacking promotions with your drop shipping business can make you more competitive when setting your selling prices.  For example, if you’re able to get 5% cash back through an online shopping portal when fulfilling your order, you can discount your selling price by 5%.

eBay Sellers Can Qualify for Small Business Cards

Link:   Best Credit Cards to Earn Points Selling on eBay

Folks who sell items on eBay can qualify for a small business card.  The key is you must be aiming to make a profit with your business.

And drop shipping makes it easy to unlock lucrative small business credit card bonuses, because the purchases you make with your card count toward minimum spending requirements.  So when fulfilling an order, you can purchase the product with your new card.

Drop Shopping For Credit Card Miles
A Drop Shipping Side Hustle Can Help You Meet a Business Card’s Minimum Spending Requirements. So You Can Unlock Lucrative Welcome Bonuses to Save Money on Travel to Destinations Like New Zealand!

Remember, applying for a small business card does NOT require an EIN (Employer Identification Number).  You can apply with just your Social Security Number as a sole proprietor.

Having a small business card for an online reselling business is also a great way to keep your personal and business expenses separate!

Here are a few great business credit card offers to consider:

Card NameWelcome Bonus
Ink Business Preferred℠ Credit Card
80,000 Chase Ultimate Rewards points (worth $800 in cash back or $1,000 in travel) after you spend $5,000 on purchases in the first 3 months from account opening
The Business Platinum® Card from American Express
Up to 75,000 AMEX Membership Rewards points

Earn 50,000 Membership Rewards points after you spend $10,000 and an extra 25,000 points after you spend an additional $10,000 in the first 3 months from account opening
Capital One® Spark® Miles for Business
50,000 Capital One Spark miles (worth $500 in travel) after you spend $4,500 on purchases in the first 3 months from account opening
Capital One® Spark® Cash for Business
$500 cash back after you spend $4,500 on purchases in the first 3 months from account opening


Bottom Line

Million Mile Secrets team member Keith operates an eBay drop shipping business in his spare time to consistently generate credit miles & points.  He’s had success selling a sewing and embroidery machine.  But you can follow his process to sell any product.

You just have to list a product for sale on eBay which you can buy cheaper somewhere else on the internet.  Once it sells, you can buy it from another online retailer and ship it directly to the buyer.

Besides generating miles & points from your purchase, you can supplement the rewards you earn by making purchases through a shopping portal, like TopCashBack.

Million Mile Secrets is a contributor to Million Mile Secrets, he covers topics on points and miles, credit cards, airlines, hotels, and general travel.

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

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