If you are running a shopify store, you would surely like to increase the sales. For this, you need to add a new product to your inventory. However, there could be various items that can be added as new products, but gift cards are certainly the best choice to go with. Choosing gift cards can help you luring customers for up-selling.
Is it really beneficial to sell gift cards online on your Shopify store? Of course, selling gift cards on a shopify store can help you increasing your business revenue more than ever before. But yes, it’s also true that selling gift cards online also comes with various disadvantages.
Are you simply getting confused?
If so, then you should check out a few most common pros and cons of selling gift cards on a shopify store online.
Advantage – It’s Easy to Sell Gift Cards Online
If you are going to setup a shopify store to sell gift cards, you are going to make a right decision. The key reason behind selling gift cards on a shopify store is that you can easily do it. Yes, you don’t need to deal with unwanted business headaches in order to sell gift cards online. Since it doesn’t require special business setup, you can easily start selling gift cards on the internet.
Whether you want to sell personalized gift cards or designer gift cards online, you can easily sell it through your shopify store online. Since selling gift cards online is easy, most of the contemporary business owners online try to unveil its benefits. Hence, if you too want to add an additional source of revenue to your business online, you should setup a gift card selling business online.
Advantage – Increase Brand Awareness
If you are assuming that selling gift cards online can only add an additional source of income to your business, you need to get rid of this assumption. Actually, when you start selling gift cards online, you are going to spread words about your own business online. Obviously, whether you want to make product-based or service-based business a success, you first need to increase brand awareness of your business.
When it comes to increasing brand awareness of your business, you will surely find selling gift cards a right choice to determine. Hence, if you want to attract new customers to your business, you need to add a range of designer gift cards to your shopify store online.
Advantage – You Can Increase Up-sell
If you want to make your business a great success saga within a short span of time, you need to learn how to increase up-sell. Yes, when a customer visit at your store to buy a specific single product, but he also buys various other items, it’s called up-sell.
Obviously, selling gift cards online can help you increasing up-selling. So, if you want to make a great value sale, you need to add gift cards to your Shopify store.
Advantage – Selling Gift Cards Helps Your Customers Making Shopping Easier
When it comes to holiday shopping, contemporary individuals want to choose an easy way of shopping. Having observed this requirements of contemporary buyers online, most of the shopify stores online have come with a unique assortment of gift cards. If you want to reduce the chances of returns, you need to add gift cards to your selling arsenal.
The best part of choosing or buying a gift card is that customers find it an easy-to-use option. Obviously, gift cards come with minimum technical issues, so, there is least chance of returns. When you don’t receive returns from customers, you are likely to boost your business better than ever before.
Advantage – Selling Gift Cards Can Help You Extending the Holiday Shopping Time
January can be the best month when it comes to selling gift cards. Actually, the key advantage of selling gift cards on your shopify store is that you can easily extent the holiday shopping season.
If you want to witness the increase in sales, you need to start selling gift cards on your store online. Actually, people want to buy something that can help sending wishes to their loved ones. Thus, they need gift cards to share their emotions and love for someone very special in their life.
What Are the Disadvantages of Selling Gift Cards on Your Shopify Store?
If you are assuming that selling gift cards on a store online comes only with multiple advantages, you need to change your perception as it may bring a few disadvantages.
So, let’s check out a few most common cons of selling gift cards online.
Disadvantage – You Need to Work on Additional Book-keeping
It is a fact that you won’t be able to record sale of a gift card as revenue. It means that you need to provide services or merchandise for the value of sold gift cards online. So, when customers redeem a gift card for services or merchandise, you can record it as revenue.
Hence, if you are doing all your accounting stuffs yourself, you need to be ready to deal with extra burden. You need to work on additional book-keeping stuffs.
Disadvantage – Increasing Number of Customer Inquiries or Complaints
When you introduce a new product to your store, you are likely to witness a great rise in customer inquiries. Obviously, customers want to know about the product. The same situation can also be observed when it comes to selling gift cards on the internet.
It might be possible that a few customers may come back to you with complaints. Obviously, dealing with additional loads of customer inquiries can influence your core business activities.
Disadvantage – Risk of Scam or Fraud
Since gift cards are usually anonymous, there is an increasing chance of online fraud or scam. It means that a scammer may buy a gift card from you in order to use it for an unauthorized sale. It is observed that most of hackers or online scammers use gift cards to buy merchandise online.
Online scammers use untraceable gift cards in order to buy merchandise online. Usually, hackers use SQL injection, phishing and other manipulating techniques to steal data to grab gift cards for free. They steal card numbers in order to do a scam online.
Final Words
Having gone through the pros and cons of selling gift cards on your shopify store, it can be concluded that ultimately it can be a right decision. If you are going to sell gift cards on your shopify store online, you should first go through shopify security guidelines.
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