Communities are looking for strategies to assist small businesses in surviving the COVID-19 outbreak. Efforts such as social separation and self-quarantining are being pushed by countries. Some customers, though, are concerned about the impact these restrictions would have on their favorite small businesses in local locations. EZ PIN will tell you how to sell gift cards for your small business.
Ordering takeout, purchasing online, and tipping extra to service employees have all been mentioned. Buying gift cards from EZ PIN and selling them in small businesses could also be a viable option.
Gift card sales are not yet available in all small enterprises. Fortunately, getting started isn’t difficult. Everything you need to know about selling gift cards at your small company is right here.
How Small Businesses Benefit from Selling Gift Cards?
There are numerous reasons to consider implementing a gift card program. The top three are as follows:
Increase Your Revenue
When a customer buys a gift card, you get that revenue. When customers redeem their cards, you collect payment in advance and remove purchases from your inventory. During the coronavirus outbreak, this can be especially beneficial in terms of generating revenue.
Attract New Customers
Customers might offer gift cards to a friend or family member who is unfamiliar with your business. It’s a fantastic approach to encourage people to spread the news about your business.
Boost Customer Loyalty
Customers must return to your store to redeem their gift cards once they have purchased them. Customers may even spend more than the value of the gift card, resulting in increased income for your business.
Types of Gift Card Programs
It may appear that all gift cards are the same, but this is not the case. Open-loop and closed-loop gift card schemes are the two most common forms.
Open-loop Gift Cards
An open-loop gift card is one that can be purchased once and used several times. Gift cards given by chosen suppliers, such as Visa or Mastercard, are common examples. “Restrictive open-loop gift cards” could be region-specific. Gift cards allowed at businesses in a co-op or business network are examples.
Buyers benefit from the versatility of these gift cards. However, they may not always result in immediate revenue for the small business that issues them. Vendors usually produce open-loop gift cards on demand. It’s possible that small business owners will have to pay a charge to use this service.
Closed-loop Gift Cards
Closed-loop gift cards can only be purchased and used at your business. Consumers have less options with these gift cards, but the small business issuing them makes more money. Typically, closed-loop gift cards are free to activate. There are no additional fees for either the small business owner or the customer. However, a vendor, merchant bank, or point of sale (POS) provider may be required to acquire cards for the small business issuing the card.
How to Sell Gift Cards for Your Business In 4 Steps
Your small business is ready to implement a gift card program now that you know more about them. Learn how to sell gift cards in your small business in 4 easy steps.
1. Choose Your Gift Card System
Make a decision on how you’ll handle gift card orders. The simplest approach for many small businesses may be to use whatever gift card option is available in their POS system. You can also buy them from EZ PIN and add them to your POS system as a new “item for sale.” Another alternative is to purchase them through a bank that specializes in this type of transaction. You’ll need to order cards once you’ve decided how you’ll process them. There are a few options available to you.
Online or eGift Cards
You might be able to sell gift cards online if you work with EZ PIN and its POS Machine. Items are processed online, just like any other e-commerce transaction. Customers can print e-gift cards or present them to you on their cellphones when they’re ready to buy in-store or online. Your company may simply have to pay a little processing fee, but you won’t have to buy real gift cards. The most typical format for these cards is a barcode, an identification number, or both.
Gift Certificates
If you don’t have a POS system that can monitor gift cards, you can utilize gift certificates, which are a bit of an old-school choice. You can instead print your certificates and keep track of your purchases in a digital ledger or add a new line item to your POS system. A combination of gift cards and gift certificates is also used by some businesses. A spa, for example, could provide a gift card for any purchase as well as a certificate for a “free massage.” Gift certificates, on the other hand, are easy to forge and aren’t the safest or most reliable alternative.
Electronic Strip or Barcode Gift Cards
If you don’t have a POS system that can monitor gift cards, you can utilize gift certificates, which are a bit of an old-school choice. You can instead print your certificates and keep track of your purchases in a digital ledger or add a new line item to your POS system. A combination of gift cards and gift certificates is also used by some businesses. A spa, for example, could provide a gift card for any purchase as well as a certificate for a “free massage.” Gift certificates, on the other hand, are easy to forge and aren’t the safest or most reliable alternative.
2. Add Gift Cards into Your System/Panel
The technique for entering your cards varies in each POS system, however they are all comparable. Scanning or swiping a blank card is a good way to start. You’ll be asked to select the amount of money you want to put on that card. To finalize the transaction, your customer will pay the amount on the card. When clients use a gift card, the gift card should appear in your POS system as a tender choice.
3. Establish Gift Card Policies for Your Team/Customers
Tell your employees how to use your system for gift cards once you’ve got it set up. Explain how you handle gift card transactions and how customers can use gift cards to make purchases. You should also let them know if you have any restrictions on gift cards. Limiting the number of gift cards clients may buy or not allowing customers to buy gift cards with gift cards are examples of policies. Other considerations include how to track purchased cards and how to create expiration dates that comply with federal regulations.
4. Start Selling and Tracking Gift Cards
You can start selling gift cards online or in your store now that your team is on the same page. If your POS system permits it, you can keep track of gift cards by linking them to customer profiles.
You’ll be able to collect those gains up front if your small business offers gift cards. Your customers will be delighted to help you and look forward to doing business with you again in the future. In difficult times, gift cards can be a terrific method to earn revenue.
Start enhancing your business now that you know how to sell gift cards in your small business. EZ PIN is the best point to start your carrier today.
