Should You Start Selling eGift Cards? Things to Consider First
In today’s accelerated, digital-first world, egift cards are more than just convenient stocking stuffers—they’re powerful tools for driving sales, deepening customer loyalty, and attracting new buyers. As businesses look for new ways to increase revenue, e gift cards are quickly becoming a must-have offering. But is now the right time for your business to start selling them?
We’ll walk you through the key factors before launching your egift card program. From their impact on customer loyalty to managing balances, we’ll cover everything you need to make an informed decision.
What Are eGift Cards, and Why Are They Popular?
eGift—or digital—gift cards are the virtual equivalent of physical gift cards. They allow recipients to receive and use them instantly, usually via email. Unlike traditional (physical) gifts, which can be delayed or lost, e gift cards offer instant value with no shipping fees or wait times. Shoppers can buy gift cards online and send them with just a few clicks, making them an excellent last-minute gift option.
1. Boost Sales With Minimal Overhead
Offering e gift cards is a cost-effective way to increase sales without the logistical hassle of managing inventory. Once set up, there are no packaging costs, shipping fees, or storage issues to consider. This scalability is perfect if you’re looking to grow your revenue streams with minimal operational effort.
Moreover, many go unredeemed or are only partially used, which means the remaining balance becomes a form of “breakage”—essentially, extra profit for your business. Implementing a system that tracks balances in real time ensures your customers know their remaining credit, which encourages repeat purchases and customer retention.
2. Enhance Customer Loyalty and Engagement
A thoughtful e gift card program can strengthen relationships with your customers. When loyal customers buy gift cards for family and friends, it introduces your brand to new audiences. Word-of-mouth marketing is invaluable, especially if the recipient becomes a repeat customer.
To take things a step further, tie your e gift card program into your existing loyalty strategy. Offer points or rewards when customers buy gift cards online, encouraging them to participate in both programs. For example, your loyalty program could offer bonus points for every $50 spent on gift cards, giving shoppers an extra reason to buy.
3. Instant Accessibility Meets Consumer Expectations
Shoppers today want convenience, and that includes the ability to buy e gift cards online instantly. With holiday seasons, birthdays, and special occasions often sneaking up on consumers, offering an instant gifting solution can set your brand apart. eGift cards are ideal for last-minute shoppers who need to send a thoughtful gift without delay.
By offering buy gift card online email delivery options, you meet customers where they are. This flexibility caters to today’s fast-paced lifestyles, which builds goodwill with your customers and keeps your brand top of mind.
4. Physical vs. Digital: Why Not Both?
Although digital gift cards are gaining popularity, physical gifts like branded gift cards still have their place. Some customers prefer a tangible item they can hand over in person. Offering both options ensures you cater to a broad audience with varying preferences.
5. Security, Fraud Prevention, and Management
While e gift cards are convenient, they also require careful management to prevent fraud. Systems like bLoyal gift cards come with built-in security features. A platform that tracks card issuance, usage, and balances in real-time is crucial.
bLoyal’s omnichannel gift card plugin feature can help you manage these programs efficiently. With real-time reporting and fraud prevention tools, you can confidently oversee every aspect—from issuing cards to monitoring balances and transactions.
6. Make Your Program Scalable and Adaptable
The beauty of e gift cards lies in their scalability. Whether you run a small local shop or a large enterprise, your program can grow alongside your business. As you expand into new markets or introduce new products, your e gift cards remain relevant and accessible to all your customers.
With platforms like bLoyal, you can adapt your gift card program to suit different seasons, audiences, and sales strategies. For example, you can promote e gift cards during peak shopping seasons like the holidays, and offer limited-time discounts or bundles with other products to drive sales.
7. Driving Growth With Data-Driven Insights
One of the biggest advantages of egift cards is the data they generate. Each purchase and redemption provides valuable insights into customer behavior. You can track how often customers use their gift card balance, how quickly they redeem their rewards, and which products are most popular with gift card holders.
These insights allow you to refine your loyalty strategies and create personalized promotions. For example, if you notice that customers frequently buy e gift cards during certain holidays, you can offer bonus points or special deals to encourage even more purchases.
Embrace the Future of Gifting
With the festive season fast approaching, now is the perfect time to meet consumer expectations and give your business a competitive edge. If you’re ready to offer a flexible, scalable solution that drives both sales and customer loyalty, launching an e gift card program is a smart move. With minimal overhead, instant accessibility, and opportunities to integrate with your existing loyalty strategy, e gift cards offer significant value for businesses of all sizes—as does choosing the right platform to manage your program effectively.
A system like bLoyal’s cloud-based solution ensures seamless gift card management, real-time reporting, and fraud prevention, empowering your business to grow confidently.
