Do you know gift cards in Pakistan and their power to help you sell more in both physical and online stores?
There is no doubt that this is a clear resource that is used by many people who need to give a gift to a friend or family member, and although they are not sure what to buy for that special person, they do know in which store to do it.
For this reason, and knowing it, more and more eCommerce are adapting to this “offline” custom, in order to increase their profits by making cash at the end of the month.
In this case, I will focus on defining together what gift cards are in online stores, how to offer them and how to have them available at all times if you have an ecommerce in PrestaShop, so be very attentive!
You can also buy them through online shopping.
What are gift cards?
A gift card is a document offered by many businesses for purchase by their customers, whose value is exchangeable and equivalent to a purchase or contracting of the products or services that the business offers at a given time.
These, as their name suggests, are physically presented in the form of a “card” or “gift card”, which is how you can also see it mentioned, especially in ecommerce.
There are two main types of gift cards: open (or bank) cards, accepted by the main payment solutions such as Visa, MasterCard and American Express; and the closed (or retail) ones, accepted only in certain stores.
In this article, we will focus on closed gift cards that can be issued by your own store.
Advantages of using gift cards in online stores
Gift cards are a great option not only for customers, but also for the sellers who sell them, as I have been mentioning to you so far.
Here are some compelling reasons to offer gift cards in your online store:
It is an easy option for the customer: he does not need to know the recipient’s address or preferences.
End customers can choose the items they really want, which reduces the number of returns on your website.
Your cash flow will increase: you will receive the payment even before you have to ship the product.
They are an easy option, but more personal than giving money.
With gift cards, new customers who might otherwise be hesitant to buy from your store have a reason to meet you.
Customers typically pay full price and spend more than the value of the gift card.
Disadvantages of gift cards for online stores
Of course, everything has its pros and cons.
Here are some of the disadvantages of offering gift cards in your store:
More accounting. You will have to account for the initial purchase of the gift card, but also the order of the corresponding product, which is when the gift card is actually refunded.
No returns, only exchanges. With most credit card processors, funds can only be returned to the purchaser’s original card. This makes it impossible to issue refunds to the gift recipient.
Possible fraud. In some cases, a scammer could purchase the gift card and use all of its value before you, the seller, realize the original order was fraudulent.