eCommerce Gift Cards: 7 Key Roles In Online Business Growth

eCommerce Gift Cards market size was valued at USD 428363.53 million in 2022 and is expected to expand at a CAGR of 7.24% during the forecast period, reaching USD 651707.07 million by 2028 – The Gift Card Market

eCommerce Gift cards are absolute deal-makers when it comes to online gifting.

They are definite sales magnets for your products & services. Contrary to the name, gift cards are also used for personal use, not just gifting.

No wonder why they are so popular.

Selling gift cards has served retail businesses well. The eCommerce sector also heavily relies on gift cards as a leading marketing and sales strategy, mainly because they are easy to purchase and take away the stress of selecting a personalized gift.

Also, eCommerce cards sell throughout the year, even more during the holiday season.

In this article, we’ll talk about seven key roles of eCommerce gift cards, How to promote your gift cards to reach broad audiences and what are the benefits of eCommerce gift vouchers.

What Are Digital Gift Cards?

Gift cards are like digital presents that you can give to your friends and family, especially when you’re not sure what they want.
In online stores, these are called eCommerce gift cards, and they are a smart way to let someone pick their gift.

But How Do Gift Cards Work?

First, you buy a digital gift card on the website or another app. You can sometimes add a personal touch, like messages and pictures. Then, it gets sent to the person you want to surprise, either through email or with a special code.

When they are ready to buy something, they’ll just use the code during checkout.

In the big world of online shopping, gift cards make it easy for everyone to get what they want! Let’s see some of its types.

Types of eCommerce Gift Cards

There are mainly two types of eCommerce Gift Cards

1. Open Loop Gift Cards

The open-loop cards are very similar to cash, a credit or debit card that can be used as long as the merchant accepts them.

For example, American Express, Visa, Discover, Mastercard, etc are all forms of an open-loop gift card.

• Multi-Brand: These gift cards are like magic cards because they work in different online stores. You can explore and buy cool things from various places using just one card. It’s like having a pass to shop everywhere!
• Digital Wallets: Digital gift cards fit into digital wallets like PayPal, making buying stuff online simple. Just a few clicks, and you’re done! It’s a quick and easy way to shop on the Internet.

2. Closed Loop Gift Cards

These types of cards are the ones given by stores specifically to use only in their stores.

You can use closed-loop gift cards both online and during an in-store purchase, but you’ll not be able to redeem the gift card’s value at a different store.

7 Key Roles Of eCommerce Gift Cards In Promoting Retail Businesses

eCommerce gift cards programs are easy to implement and affordable for businesses of all sizes. Consider these seven key roles of gift cards in promoting your business.

1. eCommerce Gift Cards Are True Revenue Boosters

A study estimates that 95% of all American households have either bought or received gift cards, with an average of 5 gift cards per shopper annually, spending an estimated $256 in total. – Blackhawk Network

The holiday season is the most profitable for the gift voucher business because customers actively look for a gift card eCommerce solution to cut the time required for selecting complex gifts for their closest ones.

Gift cards in eCommerce boost your sales and revenue in two ways:

• The first round of revenue is generated when customers purchase your gift vouchers.
• Second, when the recipient returns to redeem e-gift cards in your store, they usually spend more than the card value and increase the average order value.

2. Gift Cards Attract More Traffic And New Leads

The retail gift card business model does get value from customer visits, meaning festivals, weekends, and holidays are ideal for selling. So, even something as basic as bad weather can affect physical gift card sales.

But digital gift cards are unaffected by weather conditions or pandemics.

Recent studies showed that the U.S. gift and incentive cards market is projected to Cross $221 billion by 2024, despite COVID-19 challenges. 2021 is the year in which digital gift cards have reached the peak of their popularity.

The ease of purchase and distribution of digital gift cards is the biggest factor contributing to its growth and improved user experience. You don’t have to plow through heaps of snow to deliver gifts, we have Santa for that.

So, sip your hot chocolate and send digital WooCommerce gift cards to your loved ones.

3. Gift Cards Promotes Customer Loyalty

The gift voucher business is a reliable way to reward your customers and loyalize them.

Many eCommerce retailers offer gift voucher programs during the holiday spree.

The aim is simple – to increase loyalty with current customers. You can master eCommerce gamification by giving away offers like:

A free $10 gift card to customers who purchase $100 in the x-product category, a $20 gift card to customers who purchase $150 gift cards, etc.

These offers might convince your customer to spend more, increasing your average sale of WooCommerce gift cards. You can make these bonus eCommerce gift cards a bait to attract your customers post-festive season to increase your off-season sales.

4. Easy Alternatives For Refunds, Returns, And Exchanges

Although holidays and festive seasons are known for generating exponential sales, it is a hard truth that gift voucher businesses also face a significant number of WooCommerce Refund and Return requests during these periods.

According to the National Retail Federation, 17.8% of holiday merchandise sold during the 2021 holiday season was returned.

Conventional refund/return request processing doesn’t allow you to convert customers during the post-purchase buyers’ stage.

And this is where the gift cards work

You can convert return requests into sales opportunities by offering customers eCommerce gift cards of similar value as their return, accompanied by a personalized apology message to create empathy and loyalty toward your brand

5. Gift Cards Help You Compete With Major Retailers

Big brands largely focus on the commonalities between their customer base and selling according to buyer personas. Good on them because personalization requires products that can be personalized and accurate customer data.

Thankfully, you can easily customize or personalize eCommerce digital gift cards for customers. Better yet, you can sell customizable gift cards and let users personalize the WordPress gift card to their liking.

6. eCommerce Gift Cards Are Catalysts To Increase Holiday-Season Sales

During the holiday sales rush, gift cards are one of the most sought-after items for purchase. It supports all business types to keep the customers’ holiday spirit.

Gift certificates make holiday sales brighter for everyone, from gym and spa subscriptions to restaurant and club memberships. eCommerce cards are the best choice for last-minute buyers and women on a shopping spree.

P.S: Selling duration-based WooCommerce gift cards are perfect for promoting subscription products and services.

Since gift cards are preferred in gifting eCommerce, they are largely responsible for increasing holiday sales. Even Google Trends of the last five years show a rise in gift voucher demand during the Christmas season.

7. Gift Cards Increase Off-Season Sales

Birthdays, Anniversaries, Achievements, and moments of celebration never come watching the clock. They happen when they’re meant to be.

And such moments naturally demand gifts.

Thus, eCommerce card vouchers are always trending in special digital giftings. Gift cards have an emotional and monetary value too. They are practical gifts that recipients will always appreciate, even on non-festive occasions.

You can utilize our Gift Cards Plugin to create and sell Gift Cards on your WooCommerce store.

Customer Testimonials

In this section, we will discuss how people like you have leveraged our plugin to achieve their business goals. Check out our client testimonial to gain insights into business processes.

Cast Iron Chef

Cast Iron Chef is a fine dining cuisine with exceptional service! Running a steak restaurant with exceptional flavors and innovative cooking styles for 30 years and delivering the best of food and services to their customers.

Their main challenge was that they were unable to take a step forward as their customer growth graph was stagnant for new customers. The major concern was to increase the customer engagement rate to boost the overall sales

To quote them –

“My business took a drastic leap in almost every aspect. This gift card plugin is very well bundled with so many features. I’m highly satisfied with their plugin design and its ease of use.” – Greg Morehead

After implementing the Gift Cards For WooCommerce Pro plugin, the site witnessed an increment in sales and website traffic above 75%

These immediate benefits contributed to Cast Iron Chef’s success in the competitive market.

How to Promote Gift Cards?

Let’s see how you can promote gift cards to get more customers.

1. Strategic Website Placement

Make your gift cards stand out on your website. Consider featuring them on the homepage through eye-catching banners or dedicated sections. Make sure that potential customers can easily find information about your WordPress gift cards and understand their benefits.

2. Highlight Gift Cards Benefits

Clearly explain the advantages of purchasing gift certificates. Highlight the flexibility they offer to recipients in choosing their preferred products. Focus on occasions like birthdays, holidays, or special events as it’s the ideal time for giving gift cards.

3. Social Media Marketing

Leverage social media platforms to create engaging posts about your gift cards. Share customer testimonials, and run contests, or promotions specifically tied to your WordPress gift cards. Utilize visually appealing graphics to capture attention and encourage followers to share their experiences.

4. Harness The Power Of Email Marketing

Integrate gift cards into your email marketing campaigns. Create newsletters or targeted emails that highlight the convenience and value of your gift cards. Consider offering exclusive discounts or promotions to incentivize purchases and make your emails shareable.

5. Collaborate With Influencers

Partner with influencers or bloggers in your industry to authentically promote your gift certificates.

Influencers can create content that showcases the benefits and versatility of your gift cards, reaching a broader audience and adding credibility to your referral marketing efforts making them your Sales Superhero.

Wrapping Up

Gift cards are a must-have for most businesses, especially those in the retail sector. Customers love buying, gifting, and re-selling their gift cards.

In this article, I’ve discussed the importance of selling gift cards, their seven key roles in retail business growth, and also shown you how to promote your gift cards to reach a broad customer base.

If you want to learn more about WordPress, WooCommerce, and eCommerce, then do check out our other blogs.