When NOT To Use Your Rewards Cards For eBay And Amazon Sourcing

As I reflect on my experience selling online throughout my career, I realize that I made a number of mistakes. One of my early mistakes was not taking advantage of credit card rewards when I first started selling on Amazon. At that time, I was so focused on sourcing, prepping, and shipping products to Amazon that I didn’t give much thought to the potential rewards I could earn from my credit cards.

It wasn’t until I attended some conferences and spoke with other Amazon sellers that I learned how much they were benefiting from credit card rewards for their sourcing expenses. There are several different rewards programs available, but my preferred choice is the Southwest card because I enjoy traveling. I discovered that many sellers would use their credit cards for all their sourcing and shipping expenses during the busy Q4 season, and in return, they would accumulate a significant amount of miles, allowing them to travel for free.

Looking back, I now realize the missed opportunity of not leveraging credit card rewards earlier in my selling career. It’s a valuable lesson I’ve learned, and I now make sure to maximize my credit card rewards to reap the benefits of free travel and other perks.

There are situations when it’s not advisable to use your reward cards, and I’ve noticed this particularly when shopping at bin stores.

Many of these stores have signs indicating that if you don’t pay in cash, they’ll add a three and a half percent surcharge for credit card usage. In such cases, it wouldn’t make sense to use a credit card if the cash back or rewards points you’re earning are only around 1.5%, as they wouldn’t offset the three and a half percent surcharge. If you have the cash on hand, it’s better to avoid paying the extra fee and not use your credit card, as you won’t be able to recoup the cost through your rewards program.

However, if you don’t have the cash available for the purchase, then using your credit card may be necessary, even with the added surcharge. It’s important to weigh the costs and benefits of using your reward cards in different situations to make informed decisions.