Become a gift card reseller: the ultimate guide to get you started


Gift card sales are thriving which is making the gift card market an incredibly exciting opportunity for resellers.

Research from the Gift Card & Voucher Association (GCVA) reports that the UK gift card market saw an overall rolling year growth of 8.2% in 2021, sitting at 13.6% above 2019 levels.

It is forecasted to reach $1.4 trillion by 2026, growing at a compound annual growth rate of 11% between 2020 and 2026. This presents major growth opportunities for brands and merchants, worldwide.

At Blackhawk Network, we offer gift card programmes for retailers that leverage all of our proven omnichannel best practices, including supply chain, merchandising, marketing and end-to-end support services.

To help businesses who are considering entry into the gift card reseller space, we're going to share the ultimate guide to reselling.

It's important to note that this is a guide for businesses looking to offer gift cards at scale. It's for businesses who have the ambition to grow their corporate gift card programmes and are looking for advice, tips and support for the long term.

In this article we'll explain exactly what a gift reseller does, the opportunities for gift card resellers and of course, how to become one.

Let's get started.

What is a gift card reseller?

 

Gift card resellers are businesses who buy gift cards and sell them to their customers. Put simply, a gift card reseller is anyone who sells a gift card on behalf of another retailer, service or organisation.

Think about the last time you were in a supermarket or picking up some essentials from your local grocery store, you might have spotted a point of sale stand offering gift cards for your favourite high street, music-download or restaurant brand. This store is called a reseller - it’s reselling gift cards on behalf of other companies.

Our role is to be the provider of those gift cards and support retailers with the technology required to resell them.

The reseller who sells the gift card will typically get a small piece of the profit for their involvement. However, the actual sale is made with the gift card retailer.

Benefits of becoming a gift card reseller

 

Gift card reselling offers plenty of advantages. Here are six benefits that gift card resellers can enjoy.  

1. A lucrative revenue stream

Offering gift cards can be an incredibly simple way to offer customers a new product while adding a new revenue stream for your business.

Gift cards can complement the products and services your business already offers without taking away attention from your own brand.

2. Appeal to more customers

By carrying other brands’ gift cards in-store, merchants have an opportunity to expand their appeal to more customers and target new demographics, driving extra footfall into the store.

3. Positive user experience

Signage helps customers locate gift cards in store and by keeping gift card displays neat, tidy, and well-stocked, it encourages customers to enjoy a positive shopping experience while in your store.

4. Effective upselling opportunity

As customers make their purchase with you, it's effective for your sales team to prompt customers to consider a gift card purchase. Offering a variety of gift cards from different brands is advantageous because it offers choice and increases the chance that they could be suitable for upcoming gift-buying occasions.

5. Cost effective selling

Being a successful gift card reseller can be very cost effective. You don't have to buy big stock or store big items and if you use a gift card provider it takes away complex processes that require lots of attention or regulatory barriers.

Gift card providers (like us) typically take care of the logistics and can also offer online, in-store and mobile app gift card solutions that are scalable and secure.

6. Instant shopping

Offering gift cards means customers get instant delivery of what they want. For example, if sellers didn't exist it might mean customers have to go to high streets to get a gift card for the retailer of their choice. Being a gift card reseller makes buying vouchers for a variety of brands much more accessible.

How to become a gift card reseller

 

There are two options you can take to become a gift card reseller.

Option 1: Manage your resell programme by yourself

If you want to create an entire gift card solution for yourself, you'll need to put in a significant amount of time and effort. It's not an easy task, but if you have time to do so, the actions you need to take are:

  • Contact each gift card provider that you want to partner with and negotiate how (and how often) they'll pay you for your cards.
  • Create a gift card point of sale and market it to customers.
  • Keep track of your gift card sales.
  • Develop an infrastructure that allows you to send out gifts automatically if a digital card is purchased.
  • Be clued up on gift card scams and other types of fraudulent activity to ensure you and your customers are legally covered for any damages and losses.

If that sounds like a lot, fortunately, there's an easier, more effective way to launch a gift card programme - partner with a gift card provider.

Option 2: Partner with a gift card provider

Partnerships with providers means that you don’t have to handle many of the elements listed above. You just sell the gift card. Easy!

Our own gift card management solutions can help build your business and enjoy the benefits of becoming a gift card reseller, stress free.

Here's what you can expect:

  • Complete B2B program management​
  • Branded website to sell digital and physical cards to businesses​
  • Management of clients, discount schedules, designs, approvals and payment options, all in one place​.
  • Monthly sales reports.
  • Advanced security systems and practices.

Being successful however also relies on effective marketing, which brings us on to the next section of our guide - marketing gift cards.

Effective marketing ideas for gift card resellers

 

An effective gift card promotional strategy will enable you to reach out to your customers to spark interest in your gift cards. There are many channels you can use within your promotional strategy such as emails, text messages and social media posts.

Effective marketing through merchandising can also include seasonal displays, end caps, and in-aisle racks.

Here are some effective marketing ideas for gift card resellers:

Be clever with in-store displays

Placing your gift card collection strategically in your store is crucial to making the sale. They need to be in a place where everyone spots them to increase the sale potential.

The ideal place for a gift card point of sale display is along the customer queuing route. As customers wait to pay, they have time to think, dwell and grab a gift card for that birthday coming up, or that thank you gift they haven’t had time to buy.

Make sure gift cards are gift-ready

When gift cards are bought impulsively it means they must be ready to be bought and handed over to the recipient within the hour! To maximise that opportunity ensure your selection of gift cards are ‘gift ready’ – do they have an envelope? Are they in perfect condition? Are there designs to cover off the key occasions?

Make it clear that you sell gift cards

Customers that don’t shop with you regularly may not know you sell gift cards so make sure you have clear signage on the outside of your store to tell passers by. Use window displays, menu boards, graphics – whatever you can! The more people that know, the better.

Share on social media

Make sure you use your social media platforms to tell your customer base the selection of cards you offer. Be clever with the content and make it engaging and shareable. Perhaps consider a mini giveaway for shares and likes. The more the word gets around, the more likely you’ll become the ‘go to’ for gift buying.

Add gift cards to your website

Sell gift cards online to create another opportunity for customers to buy them through you. Once added to your product list, make sure people that visit your site know you sell gift cards through imagery, promotions and exciting offers.  

Train your team

Invest in training your team members to confidently talk to customers about your gift cards and know how to seamlessly process the gift card on the cash till. Some resellers incentivise their staff to sell more gift cards.

Your people are one of the most powerful assets for making a success of gift card programmes, resellers must always remember that.

Conclusion

 

How much you make from each gift card sale will depend on the number and value of the cards sold, but for businesses looking to offer gift cards at scale, one of the most important considerations is working with the right partner, who will ensure a good revenue stream is being delivered.

If you have questions or would like to chat about how Blackhawk Network can help you deliver a successful gift card reseller programme, fill in the contact form on your right and we’ll be in touch.

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