How Refund via gift cards can be a game changer for your return process

How Refund via gift cards can be a game changer for your return process

When customers purchase a product from you, they mostly do so only after going through your returns policy.


July 16, 2021

October 4, 2022

When customers purchase a product from you, they mostly do so only after going through your returns policy. However, even with a solid returns policy, there are chances that they may get impressed with the smooth process you were able to carry out or that they may choose not to buy from you again, either way there is always that cloud of uncertainty always hovering over your business.

Here is where a brilliant tactic of ‘gift cards’ comes into play. Gift cards substituting refunds act as a boon for both the business as well as the customers. Instead of going through the hassle of carrying out a refund process that can be very time consuming. Gift cards on the other hand do not make you lose the customer and the customer also gets to buy whatever he/she chooses to with the said amount. It’s a win-win for both parties.

Let us first understand how gift cards work

A gift card can be used to make a purchase at different locations like a retail store, gas station, restaurants and many others. You load money onto the card, which you or a receiver of the card can spend to make a purchase at such accepted stores. Gift cards can be both physical and digital.

In case of digital gift cards, you are assigned a unique code that can be used to redeem at online retailers while making a purchase online. There are some retailers and companies that avail both physical as well as digital gift cards. Such cards make it convenient for the customers to pay for any purchase.

Here are a few benefits of offering gift cards to your customers:

1. Gift cards build brand awareness

We all have at some point or the other received or given recommendations to our friends and families, however they only go so far until we get to test them out risk-free. Receiving a gift card gives the customers an opportunity to try something according to their personal liking. Gift cards help promote the brands you are associated with, which in return brings in more customers for future purchase. Gift cards help you increase your potential reach.

2. Gift cards enable customer engagement

Building a personal connection and winning over the trust plays an important role in keeping long term clients. With so many incentives being provided these days, offering gift cards as opposed to refunds plays a huge role in the loyalty program and is a great way to build that customer relationship. Offering gift cards with certain benchmarks will make your customers come back to you to reach that required amount.

3. Gift cards generate useful data

Gift cards as refunds opens doors in allowing you to serve your customers effectively as these allow the customers to communicate their preferences better.

4. Increases sales and revenue

Gift cards as refunds  help you drive more revenue. At times such e- gift cards are used to buy discount products that have a higher value so as to avoid paying the heavy amount for purchasing. Studies have shown that customers spend more than the gift card while making their purchase thereby guaranteeing more inflow of sales.

5. Gift cards are convenient and secure in comparison to a return or exchange procedure

Unlike the conventional packaged product that could be damaged or stolen in the process of returns, digital gift cards are far more secure and convenient. The digital gift cards can be received or sent without any trouble. Once the card is received by the customer, they can go ahead and purchase their favourite item or re-gift the card to a friend. It doesn’t take much time or effort to do so.

6. Less chances of fraudulence

Use of electronic gift cards allows partial redemption that leaves the rest of the balance stored on the gift card thus eliminating cash backs. When customers ask for a return, sending out a gift card helps reduce fraud when customers try to make expired returns for cash. Issuing gift cards as returns instead of cash leads to more sales.


       Give wings to your e-commerce business dreams with Gift Cards!  

Why wait to delve in success brought upon by gift cards as a part of your returns policy? Get your sales and business flowing by switching to offering gift cards, providing your customers a vast range of choices to spend their money on and give yourselves the opportunity to retain the customers and increase business.