Gift cards can be a great way to increase your online store’s average order value.  Though it sounds trivial, gift card sale is a good source of income. The article will cover the definition of a gift card, why you should use a gift card system and how to use it.

1. What is a gift card?

A gift card can be considered a type of product or a legit payment method. A gift card can be sold, given as a present, or redeemed. A customer can use it to replace up-front money payment, but most of the time the gift card is only viable on certain offers.

2. What are some benefits of gift card sales?

• Sometimes, people buy gift cards but then forget to or no longer want to redeem the card. If you think about it, you actually earn money without having to sell anything to them.
• Habitually, when a gift card is redeemed by a customer, the customer is more likely to buy additional items that are more expensive than the gift card, resulting in upsell.
• Gift cards indirectly reduce the amount of returns and replacements. Gift cards tend to be gifted to other people, therefore the receiver can choose to use it or not and choose what to buy. People also make less effort in replacing the items if they are given, not directly bought.

3. How to do right on gift card sale

• Set a limited time for gift card redemption. Everybody works and buys under pressure. By doing so, they will feel the need to make a purchase.
• Set predetermined gift card values and offer them to people who make big purchases.
• Sometimes, give away gift cards as a free gift.

Now that you have a firm grasp of the basics of gift card sale, you can start creating your own gift cards and sell or give to your customers!