The 5 Best Ways to Sell Gift Certificates Online

By okaybliss — ON Dec 04, 2023

According to the 2023 survey by PwC Canada, 44% of people are choosing to stay home for the holidays, while 32% are planning to travel within Canada. This shift in holiday plans is likely to increase online gift purchases. When it comes to giving and receiving, the basic gift card proves to be a highly adaptable and convenient alternative, whether sent via email or snail mail.

If you are a gift card reseller and want to capitalize on this trend, it’s essential to consider the potential effects on your business, both positive and negative, before offering gift cards. This article will explore the advantages and disadvantages of selling gift cards on your Shopify store, as well as four effective alternatives such as BuySellVouchers for selling gift certificates online.

Shopify Store

Creating a shop on Shopify to sell gift cards is a straightforward process that enables businesses to reach a broader customer base. The platform is user-friendly for buyers, but businesses should exercise caution in money tracking and be prepared to assist customers with any inquiries they may have, ensuring a seamless experience.

Pros:

Ease of Use:

Setting up your Shopify store to sell gift cards is a straightforward process, requiring minimal investment. A user-friendly interface and various tutorial options make the process accessible.

Word-of-Mouth Marketing:

Gift card purchasers often introduce new customers to your store, creating brand awareness. This organic marketing can significantly boost your business.

Upselling Opportunities:

Some of the recipients tend to spend more than the gift card’s value, increasing the overall sales value. This presents a golden opportunity for gift card resellers.

Simplicity for Customers:

Offering gift cards simplifies holiday shopping, reducing stress and potential returns. Customers appreciate the convenience of letting their recipients choose what they want. This is one of the reasons why gift cards are popular products on the Shopify platform.

Extended Sales Period:

January sees a surge in gift card redemption, extending the holiday sales period. This prolongs customer engagement and sales opportunities.

Cons:

Book-Keeping Complexity:

Gift card sales require meticulous bookkeeping, treating them as a liability until redeemed. This adds a layer of complexity to your financial management.

Potential Increase in Inquiries:

Introducing a new product can lead to customer service inquiries, especially during busy seasons. Adequate preparation and customer support systems are crucial.

Fraud Risk:

Reselling gift cards can be risky because you cannot always guarantee 100% the validity of the gift cards you purchase. In the case of low-quality products, platforms like Shopify can quickly shut down your online store. Implementing robust security measures is essential to mitigate this risk.

Online Marketplaces

Selling gift cards on large websites like Amazon or eBay is a great alternative to Shopify for reaching a wide audience, but be aware that there are local fees. These sites are trustworthy, which is a huge benefit, but you’ll need to find ways to stand out from other sellers.

Pros:

Large Audience:

Platforms like Amazon or eBay expose your gift cards to a vast audience, significantly increasing your visibility.

Built-In Trust:

Online marketplaces often come with built-in trust, alleviating concerns about legitimacy. Buyers are more likely to trust well-known platforms.

Cons:

Fees:

These platforms typically charge high fees, affecting your profit margin. Understanding and factoring in these costs is crucial for pricing your gift cards.

Increased Competition:

The abundance of options can lead to stiff competition. Unique selling propositions and effective marketing are necessary to stand out.

Social Media Groups

Selling gift cards in social media groups lets you connect directly with interested buyers in a specific community. While it’s personal and focused, managing the group and reaching a broader audience may pose some challenges.

Pros:

Targeted Audience:

Joining or creating groups related to your specific niche allows for targeting a specific audience. This targeted approach can lead to higher conversion rates.

Direct Interaction:

Engage directly with potential buyers, building a community around your brand. Social media groups provide a space for direct communication and relationship building.

Cons:

Moderation Challenges:

Managing groups can be time-consuming. However, the benefits of direct interaction often outweigh the challenges. Also, note that social media platforms may close these groups at any time due to fraud or violation of terms of use.

Limited Reach:

The audience is limited to group members. While this can be an advantage for niche markets, it may limit your overall reach.

Telegram or WhatsApp Groups

These groups offer swift and direct communication with potential buyers. However, they come with limited features compared to dedicated platforms, and users may have privacy concerns.

Pros:

Instant Communication:

Platforms like Telegram or WhatsApp offer direct communication with potential buyers. This real-time interaction can lead to quick conversions.

Community Building:

Like social media groups, you can build a community around your brand. Building a community enhances brand loyalty and trust.

Cons:

Limited Features:

These platforms have limited features compared to dedicated selling platforms. While simplicity can be an advantage, it may limit certain functionalities.

Privacy Concerns:

Some users might be wary of privacy issues on messaging apps. Addressing these concerns and ensuring transparency is crucial.

Increased Risk of Fraud:

There are practically no fraud risk mitigation mechanisms here. Everything is based on the good faith of the buyer and seller.

Gift Card Marketplaces

Selling gift cards on marketplaces like BuySellVouchers.com provides a specialized platform tailored for secure transactions. Despite having a potentially smaller audience compared to Amazon or eBay, enhanced security features help reduce the risk of fraud, ensuring a safer trading environment.

Pros:

Specialized Platform:

Dedicated gift card marketplaces, like BuySellVouchers.com, focus solely on buying and selling gift cards. These platforms are tailored to the specific needs of gift card transactions and understand the interests of gift card buyers and sellers, doing everything to achieve them.

Reduced Fraud:

These platforms often have measures in place to reduce the risk of fraud. Enhanced security features contribute to a safer transaction environment.

Cons:

Lesser Known:

Smaller audience compared to major online marketplaces like Amazon or eBay. While these platforms cater to a niche, awareness might be a challenge.

Fees:

Like other platforms, these marketplaces may charge fees. Understanding fee structures is crucial for effective pricing. In the case of BuySellVouchers, this will not be a problem because the fees are very low. Respectively, currently, the seller’s fee is only 1%, while the buyer’s fee is 0.5%.

Conclusion

In conclusion, selling gift certificates online provides a versatile and effective way to boost sales and please customers during the holiday season. The best solution will rely on your target market, tastes, and business model. Each option has its own pros and cons. It is imperative to take proactive measures to solve such issues regardless of which option you choose—whether it’s the simplicity of a Shopify store, the extensive reach of online markets, the focused strategy of social media groups, the immediate communication of messaging apps, or the niche platform of gift card marketplaces like BuySellVouchers.