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Small business cards are a huge potential source of rewards. They offer lucrative signup bonuses and valuable bonus categories you won’t find with consumer cards. But many points and miles enthusiasts stick to personal cards because they aren’t sure where to start—or how to qualify for a small business card.
In today’s post, our friend Cassondra Barney covers the basics of starting an Amazon business. If you’re excited to get started, check out her YouTube channel ProfitGuru for tons of additional resources.
Buying products to resell on Amazon can make it really easy to reach the required spending amounts to earn bonus points and welcome offers on credit cards.
By leveraging Fulfillment by Amazon to sell products you’ve purchased elsewhere, you can earn rewards points and make enough to pay off the balance accrued on your card each month. Better known as reselling, this is a relatively easy-to-implement strategy to earn credit card rewards. Plus, you can potentially spin a tidy profit.
How Amazon FBA Works
One of the most popular methods for reselling on Amazon is a retail arbitrage model. Essentially, you purchase products from stores like Target and Walmart to resell on Amazon and take advantage of the price differences.
For example, you buy shampoo from Target that is on sale for $3 that might be selling for $11 on Amazon. You buy the products, list them in your Amazon account, and send them to the Amazon warehouse. Then, you'll make a small profit off of the price difference when the product sells.
Reselling is Considered a Small Business
One of the benefits of retail arbitrage is that it can be deemed a small business, allowing you to separate the expense of purchasing and shipping your products from your personal spending. That opens up the opportunity to apply for business rewards cards in addition to personal cards, almost doubling the playing field for points and miles fans.
In addition to the extra rewards that you earn with this strategy, putting all these expenses on a small business card can make things much easier come tax time, as all your business expenses are easy to reconcile and ready for your accountant.
It also allows you the flexibility to purchase more products if you encounter an excellent deal. Just remember that credit card interest rates are extremely high. Make sure you’ve acquired enough experience in your Amazon business to feel confident that you can recoup your expenses before your credit card statement is due. Until then, it’s best to scale up slowly, using the capital you have on hand.
Leverage Amazon Reselling to Earn a Welcome Bonus
A lot of people like to take advantage of welcome offers and bonuses that banks offer as incentives to sign up for a new credit card. When accounted for as a portion of your overall rewards earned on a card, a high-value welcome bonus can make up the majority of the points earned.
However, it can be hard to reach the spending amount required for the most lucrative small-business welcome offers. Selling arbitrage on Amazon can give you extra spending power to put them within reach.
You can buy products to resell and hit the requirements to earn the welcome bonus. Then, sell those products for a small profit and use the revenue to pay off the balance on your card each month.
Card Application Strategy for Amazon FBA Reselling
It could be tempting to apply for store cards like the Target REDcard™ Credit Card or Amazon Business Prime American Express Card to get a high cashback rate at specific retailers with this strategy. However, the best long-term results will come from putting together a core set of quality business rewards cards within a single program.
One option: Chase Ultimate Rewards. Chase currently offers a three-card suite of Ultimate Rewards earning small-business cards. Each card offers an outstanding signup bonus, standout earning rates, and a range of travel and purchase protection benefits that can help when the unexpected happens.
- Earn 100k bonus points after you spend $8,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn 1 point per $1 on all other purchases
- Round-the-clock monitoring for unusual credit card purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- Redeem points for cash back, gift cards, travel and more - your points don't expire as long as your account is open
- Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards®
- Purchase Protection covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account.
- Member FDIC
- 3X points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year
- 1X point per $1 on all other purchases
The Ink Business Preferred® Credit Card is the premium card in this lineup and currently offers the best signup bonus of the entire Ultimate Rewards family of cards. Outside of the monster welcome offer, this card also returns 3x points on select business categories on up to $150,000 per year in purchases. The only downside to this card is you’ll need to factor in the $95 annual fee to your bottom line.
If you don’t want to pay an annual fee, Chase also offers two no-annual-fee Ink cards that also come with excellent signup bonuses.
- Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
- Round-the-clock monitoring for unusual credit card purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- 0% introductory APR for 12 months on purchases
- Member FDIC
- 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
- 1% cash back on all other card purchases with no limit to the amount you can earn
- Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase made for your business
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
- Round-the-clock monitoring for unusual credit card purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- 0% introductory APR for 12 months on purchases
- Member FDIC
- Earn unlimited 1.5% cash back on every purchase made for your business
All three of these cards feature minimum spending requirements that can be prohibitive if you don’t have adequate expenses each month to put on the card. One of the benefits of reselling through Amazon FBA is the volume of purchases you make from retailers to send to Amazon each month. Once you have dialed your strategy in, you should have no problems meeting the higher minimum spending requirements for business cards like the Chase Ink trio.
If you have the Ink Preferred card, you can redeem the points earned on these cards directly for travel via the Ultimate Rewards travel portal at 1.25¢ per point. Or, you can transfer points to 14 airline and hotel partners for potentially much more value if redeemed for luxury travel expenses such as business-class flights or a luxury hotel.
Credit Cards & Amazon FBA Go Hand-in-Hand
If you’re not already using credit cards to leverage and scale your Amazon business, then you really should be! There are so many benefits to signing up for a business rewards card.
Small business cards simplify your accounting, making it easier to report your expenses at the end of the year. When you open a new card and meet the spending requirements, you’ll earn a stack of rewards you can use to treat yourself to a well-deserved vacation.
If you’re not already selling on Amazon, there is never a bad time to get started. It’s an accessible business to start because you can begin with a limited amount of capital, zero experience, and only invest the time that you have available.
To learn even more about how you can start selling on Amazon, jump on YouTube and check out the ProfitGuru channel. You’ll find a ton of educational content on how to buy and sell items for resellers, including a complete beginner's guide to selling via Amazon FBA.
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