CHICAGO, IL--(Marketwire - Mar 2, 2012) - FuzeBuy, a company that specializes in e-Gift cards, mobile apps and loyalty programs for retailers and restaurants, performed a recent study on online gift card sales, revealing amazing growth in e-Gifts for the 2011 holiday season.
With the growing popularity of e-Gift cards among consumers, a number of brands have added e-Gift cards to their existing physical card shopping cart in the past year.
The study shows that during the holiday season (October 1st through December 31st) an average of 33% of sales moved to e-Gift cards this year; one fortunate brand experienced a sales move to e-Gifts of nearly 55%!
e-Gifts are also impacting overall gift card sales. The results show that brands have seen as much as a 99.93% increase in their gift card sales, nearly doubling overall sales year over year.
Randy Fox, Managing Director at FuzeBuy, commented, "It was a great season. I believe what also helps revenue growth is when clients take advantage of the wide range of promotions we can implement."
FuzeBuy's clients offered shoppers numerous promotions during the 2011 holiday. Deals ranged from free shipping on physical gift items, promotion codes, discounts, a bonus gift card or merchandise with purchase, and specially priced gift sets.
"We are so happy that we added the e-Gift card option to our online store," remarked Angela Reed from Morton's The Steakhouse. "We are very pleased with the increase in revenue that it generated. E-Gifts brought $500,000 in the first three months, which was much more than we anticipated!"
Gift Card Market
E-Gifts are estimated at 4% of entire industry sales and at least 8 million consumers are purchasing e-Gift cards now. However, only 59 of out of 100 largest online merchants allow customers to buy e-gift cards from online or mobile sites. FuzeBuy expects this number to grow even more as, overall, gift cards have ranked as the number 1 requested gift item for several years.
Not only are gift card sales increasing, but the average value of a purchased gift card is on the rise with a lift of over 23% from 2010 to 2011.
E-Gifts in Mobile & Loyalty Programs
Consumers want e-Gift cards in every available channel they can access. Solutions now give brands the ability to offer members in loyalty programs the choice to receive their rewards virtually (as an E-Gift) or as a traditionally mailed reward.
Although the numbers vary by program, one retailer FuzeBuy works with has 70% of their consumers requesting their reward virtually.
Also, with virtual delivery, mobile is the obvious new frontier. In fact, when asked in a recent survey, 1/4 of respondents claimed that they would purchase an e-Gift if they could store it in a mobile app.
The Truth about E-Gift Cards
A number of retailers are still weary of implementing e-Gifts. However, FuzeBuy's report proves that e-Gifts are gaining in popularity and increasing overall gift card revenue. There are some truths about e-Gifts that can't be ignored.
Brands love them because they are cost effective, increase sales and can be used across multiple channels such as social media, rewarding, and customer service.
Consumers prefer e-Gifts because they are sent instantly and highly personalized.
Retailers need to know that adding e-Gifts now will allow them capitalize on this revenue generator.