Gift Cards Are Expected To Top Holiday Shopping Lists: Are You Ready?

Since you have been working with a superior web hosting provider all year, you are undoubtedly ready for the black Friday and cyber Monday shopping extravaganzas. You have the resources and systems in place to handle what is expected to be the biggest shopping season in cyber history.

As you and your web host have been outlining your holiday strategy you probably developed some innovative methods to sell and deliver gift cards since $24 billion in gift cards are expected to be purchased this holiday season, according to the National Retail Federation.  Millions of Americans have gift cards tucked away in envelopes, drawers and wallets. And many online (and offline) retailers are profiting as a result. Even though millions of Americans haven’t used last year’s cards, this will be a banner year for card giving, with researchers predicting a whopping 34 percent increase over last year. For the fourth straight year, gift cards are expected to be the top holiday gift purchase. More than two thirds (69%) of consumers that were surveyed plan to buy gift cards.

That being the case, millions of savvy online retailers are fine-tuning their gift card options and offering special frills and promotions to make their gift cards look more like “gifts” and less like “plastic money.” Some online retailers are coupling gift cards with holiday cds, or ornaments. Others are selling the cards in small gift baskets or accompanied by stuffed animals.

John Fleming, marketing chief for Walmart, said his company is very focused on gift card giving. “What this means is that people have money in their wallets and it’s pointed to our store.” That is especially sweet when you consider that the majority of consumers who redeem their cards will spend more than the card is worth, making up the difference with their own money.

Web hosting provider lists types of gift cards:

Gift certificates: These are vouchers with dollar or point values embossed on them. They can be personalized with the recipient’s name and the giver’s logo and, depending on the vendor, can be replaced in case of loss or theft.

Gift checks: Sometimes synonymous with gift certificates, gift checks usually refer to money orders issued by banks or credit card firms.

Gift cards: These plastic cards come with a magnetic strip and/or bar code preloaded with a dollar or point amount. Some are reloadable (in which case they are referred to as debit cards), others are not. They are generally available in two types including those that carry a major credit card brand and are redeemable at any merchant accepting the brand or merchant-specific cards. Reloadable cards that are accepted at a variety of locations have become increasingly popular in recent years.    

Virtual certificates: Many gift certificates can be delivered via email directly to the recipient’s mailbox, saving time and the expense of printing and shipping. The “virtual” certificate usually contains a link to a web site where recipients can select and claim their gifts or services.

“It’s no secret why gift cards are the most popular item on consumers’ shopping lists,” said National Retail Federation CEO Tracy Mullin. “Because of economic concerns, many consumers pulled back on spending for themselves this year and are hoping to receive a gift card so they can purchase something they may have had their eye on for months.”

Get with your web host for a last-minute look at your ecommerce site to make sure you have user-friendly gift card processes in place and to make sure your site is ready to accommodate the biggest online shopping season ever. This time next week you could be laughing all the way to the bank. And that, my friend, is something to be thankful for.

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