Re: Its impractical of course.
"If person A doesn't buy gift cards, but instead buys other items and sells them onto others, the problem is the same."
Yes, but the practicality sending Tide detergent over the Internet as a series of numbers is vanishingly small. Intercepting meaningful quantities of physical products crossing tariff borders is comparatively easy.
"Proceeds of a crime can be ordered seized"
Then why can't we track Bitcoin payments to blackmailers? Or gift card numbers through a hawala?