The online retail sphere is chiefly characterized by cut throat competition. E commerce merchants are experimenting with various novel methods to attract buyers and increase sales. In such a scenario innovation and clever thinking are essential for survival and success. Moreover, online retailers need to be constantly on the lookout for emerging market trends that will serve as opportunities for growth of their businesses. The use of digital gift cards is one such phenomenon that is gaining popularity among online buyers. Read on, to find out more about this.
Insights from a recent survey
We get to know a couple of interesting things about digital gift cards from a survey by InComm, a company that offers transaction services along with gift and debit card products. The findings are drawn from an online survey of 500 US consumers carried out in the month of November. Out of those online shoppers who planned on getting digital gift cards during the holiday season, 48% wanted to buy two or three cards, 44% said they will purchase more than three cards and the rest 8% would buy only one card.
Reasons for popularity
The immense popularity of these cards during the holiday season can be primarily attributed to the fact that they can be purchased very easily and quickly. According to the survey, the main reason for preferring these cards is their instant delivery. 62% of them desired to buy those cards that delivered gift items electronically. The report says that 75% of those surveyed expect to purchase at least one digital gift card in the year 2014. Around 70% of the respondents are keener on buying digital gift cards now than they were two or three years ago.
Digital and physical gift cards
Physical cards are still popular among shoppers but they like to have a choice between digital and physical gift cards when they are buying from an online store or mobile app. According to the survey, this is applicable for 87% of the buyers. The report also throws light on the type of merchants consumers buy from. The popular merchants were dining establishments, department stores and web-only retailers.