Gift cards are a great way to expand your dropshipping business. Gift cards are big business. They have an estimated value of $160billion each year.
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It’s not surprising that more than half of all online businesses are dropshipping. Cardtonic is their knight in shining armor.
Dropshipping: How does it work?
Dropshipping was previously discussed as one of the best online business ideas. It is a business model that allows a retailer to have an online presence for his brand, but not a physical store where his products are kept. He then refers an order to manufacturers or wholesalers that have the product. It is easy to wonder how they plan to make their profit and keep their “virtual” lights lit. However, this comes down the difference between the selling price that the buyer agreed upon and the actual price from the supplier.
Dropshippers are likely to need a discount payment method, especially if they work with eCommerce platforms such as Amazon. Cardtonic has a lot of these valuables and Amazon gift cards.
Where does Cardtonic come in?
It’s an easy way for people with gift cards that they don’t need to to trade them for naira at discounted prices, then sell it to drop shippers. This is a win-win situation for everyone.
Cardtonic is an app that allows you to easily exchange gift cards for Nigerian naira.
Cardtonic then sells these gift cards to dropshipping partners at a discount price. It’s a win-win scenario for everyone involved.
How to Exchange Gift Card for Naira on Cardtonic
- Get the cardtonic app for Android and iOS
- Start a transaction by choosing the brand, type of gift card and amount.
- The admin will receive your transaction and process it within minutes.
- You can withdraw instantly from the platform.
Dropshipping is growing rapidly, thanks in large part to gift cards. Dropshippers can get products at a lower rate, which allows them to offer their customers lower prices, which increases their sales tremendously.
Why gift cards?
Gift cards are simply another way to make money from your ecommerce store.
They are a great way to build customer loyalty and increase their lifetime value.
We don’t think so.
Stats speak by themselves.
- 55% of gift-card users shop online more than once. This means more traffic.
- The average gift card owner spends 20% more than the gift card’s value.
- 74% of the recipients love receiving gift coupons or vouchers at Christmas and other celebrations.
What could be better than extra traffic and increased profits?
Online gift cards are extremely easy to set up and maintain.
How to use gift cards to reward customers
First Data’s U.S. prepaid consumer insights revealed that 68% of Americans believe gift cards are more appealing than coupon codes or bonus money.
You will also increase customer loyalty if you give your customers presents they love.
Users who are unhappy with your service will talk about you on social media and to their friends, which is much more powerful than advertising.
How can gift cards be used to increase customer loyalty?
- Make a Customer Loyalty program to give $5 credit or a 5% discount gift certificate after you spend 200$.
- Discount Included: When a customer purchases for the first time in your shop, you can offer a gift card that includes a discount on his next order.
- Complaints using a Gift Card: If you are experiencing an inconvenience, you might consider giving a gift certificate to your customer to show your apologies.
- Partnership with Other Companies who offer complimentary services and place their gift cards inside your box
- Seasonal gift cards: will give away a gift card if someone purchases an item on a particular day or moment.
- Social Contest: Create a contest in which people can win gift certificates.
We’ve already mentioned that gift cards are a great way of increasing customer loyalty as well as to attract new customers. It is rare for recipients to redeem gift cards’ credit.
The next step is to make sure they have a great customer experience. This will ensure that you get their repeat business and possibly a referral.
Increase Brand Loyalty through Customer Loyalty Program
Most likely, you’ve seen gift card promotions in stores as Christmas approaches.
People love to get something free or a discount on their next order. So use this opportunity to your advantage. A well-thought out promotion can help build brand loyalty.
This is a great example: Give away a $5 gift card credit when customers spend more than $100 in your store.
This marketing strategy not only increases brand loyalty but also may encourage customers to spend more than they originally intended. That means that you can make a greater profit.
Tip: gift cards are valid after the holiday season has ended. This encourages people spend again after Christmas.
You could also include gift cards in a loyalty program. A $10 gift card is a free option for someone who has made 10 purchases.
Loyalty programs are a great way to promote repeat business!
Increase sales with Social Contests and Partner
You can increase your website traffic easily with digital gift cards. How do you increase your website’s traffic? How can you create a Social Contest? You can ask people to submit pictures to your newsletters and participate in a contest. Then, award them gift cards.
This will help you find new customers and increase sales. It will also increase traffic to your site.
Partnering with other people can help you increase your sales. To earn a reward for every customer you refer, you can use your partner’s affiliate program by putting their cards in your boxes. You can also create an affiliate program to find partners who will allow you to put your gift cards in their boxes.
Manage Returns and Complaints
Online store owners are plagued by returns. These returns can be costly for online store owners.
Instead of offering a monetary refund, offer disgruntled customers gift cards. This is a great way to grow your dropshipping company and keep the money in your business. It also gives you an opportunity to impress prospects with your stock.
Customers who have a complaint can also use a gift card. To appease them, you can give them a gift card. You might also be able retain their loyalty by using a gift card to help appease them.
You can also give gift cards away to loyal customers or to employees who perform well. These cards are great for building relationships, as you can see.
How to use gift cards and crypto to power your business
Let’s talk about building your online store and making gift cards work for us using Paxful after we have checked the boxes on your online business checklist. This is how dropshipping would look in a nutshell.
Creating an online store
To make it easier for customers to browse your online store, include as many details as possible. Photos, product description, item variations, and availability of products are all important.
Online marketplaces are extremely competitive in terms of sales. Offering customers markedly discounted or competitive rates is one of the best ways to get them to buy your products. Customers will be attracted to products that are 10-20% cheaper than the suggested retail prices (SRP).
Organizing your products makes it easy for customers to browse your online store. You can also indicate whether your products will be available wholesale on some e-commerce platforms.
Setting up your preferred method of payment
While many e-commerce sites allow third-party payment gateways to be used, others only accept built in payment processors. Another thing to be aware of is the fact that many online marketplaces that allow third-party payment processors can charge additional fees. When setting up a payment option for your online shop, it is important to consider all options.
This includes bank, online wallets and other third-party financial services providers. You might need payment processors that can be accepted worldwide, particularly if your business serves customers from outside your country.
Orders accepted from the online shop
It is important to confirm receipt of the customer’s order. This will allow them to know if their order has been processed. To avoid paying for cancellation fees , you can accept pre-orders . You should also include shipping options and costs in your product information.
Use the customer’s payment for BTC purchase on Paxful
To avoid any chargebacks, you can transfer your customer’s payment to your secondary payment processor account once you have received it. This fund will be used to purchase fractions of Bitcoin on Paxful . Paxful offers over 350 methods to buy Bitcoin, including the most widely used payment method in your country.
Gift cards purchased on Paxful
Paxful allows you to buy Bitcoin and receive gift cards from over 125 brands around the world. You can use cryptocurrency in your online business by selling it for gift cards from certain brands at a lower price. Imagine a customer ordering cosmetics from your store. You can purchase a gift certificate with 100 USD value for 70 USD worth BTC on Paxful. It is better to use the gift card immediately so that you can instantly check its balance or value.
Buying products using gift cards
Next, visit the website of the online retailer and load the gift certificate to your account. Then, you can buy the order for your customer using the gift credit. It is better to ship the product directly to you as most online marketplaces have strict rules regarding shipping addresses and may ban your account for frequent changes.
Sending the product to your customer
You should ship the item to your customer immediately after it has been delivered. You should also update the delivery status of the product so that your customer knows when it will arrive.
Using the steps in a real-life business process
Let’s assume Jade (dropshipper), has created an online shop on a popular website where she sells skincare and makeup products from a well-known brand. Jade offers discounts of 10-20 percent on her products to attract customers in an extremely competitive online beauty market. Jade also signed up to a paid subscription in order to receive exclusive perks for sellers. The platform accepts payments from the most accessible payment options, making it easier to shop.
Customer Kate (shopper) saw Jade’s online store, and placed an order to purchase an eyeshadow palette. Kate received 15% off her makeup because Jade has reduced the prices of her products. Jade receives Kate’s payment through her online wallet, which is directly linked with her online shop. Jade immediately transferred the funds to another bank account in order to avoid any chargebacks.
Jade then logs into her Paxful account to purchase Bitcoin via bank transfer . After Jade has enough BTC, she looks for offers that offer a 20% to 50% discount. then sells her BTC for a gift card from a well-known makeup retailer. Jade uses the gift card to purchase Kate’s eyeshadow palette online at the makeup retailer and then waits for it to arrive at her home.
Jade will ship the package to Kate once it arrives at her doorstep. Jade could make a profit of 5-35% depending on how much she received when she purchased the gift card.