Local merchants who are not offering gift cards are missing a valuable opportunity. Whether those gift cards are sold online or off, local businesses should follow the lead from national retail chains who are peddling their gift cards in supermarkets and pharmacies across the nation. Gift card sales – especially online gift card sales, have many advantages.
- They satisfy an urgency for those who are shopping for last minute gifts. Purchasing a gift card online is easier than a trip to a specific restaurant, spa or retail outlet. By offering an online sales opportunity, business owners are not only satisfying an immediate need but they are expanding their hours of operation to 24 hours a day without having to man the store.
- Online sales help business owners capitalize on seasonal opportunities. Sales will naturally increase at holiday times but by utilizing simple email marketing and social media marketing geared towards gift card sales, those numbers will increase tenfold.
- Making the most of seasonal shopping sprees allows retailers to better prepare for rainy days. While many people use their gift cards within the first several weeks of receiving them the remainder will be redeemed over a period of time.
- It is a fact that 8 to 10% of gift cards are left unused. That is a lot of money left on the table. While this can create an issue for certain establishments in regards to converting unused cards to revenue on balance sheets, a good accountant can help to solve that dilemma. It’s a value worth thinking about.