The Power of Wish Lists and Gift Cards During the Holiday Season
Every year, millions of Amazon wish lists are created as shoppers prepare for the holiday season. These lists represent not just gifting intentions but significant sales potential for Amazon sellers. And as December 25 approaches, there’s a game-changing opportunity that sellers need to capitalize on: the post-holiday gift card redemption wave.
🎁 GIFT CARDS: A SECRET WEAPON STARTING DEC 25
The holiday season and gift cards go hand in hand. Representing over 55% of the average shopper’s gifting budget, gift cards are more than just a popular choice—they’re a powerful driver of post-holiday sales. For Amazon sellers, this is an unmissable opportunity.
The Booming Gift Card Market
The numbers don’t lie:
- The global gift card market was valued at $984.3 billion in 2023 and is projected to grow to a staggering $3.09 trillion by 2030.
- North America alone accounted for $344.51 billion in 2023, with expectations to reach $1.76 trillion by 2033.
- Amazon gift cards represent up to 10% of the total North American gift card market ($34 billion).
- 71% of consumers prefer to store gift cards digitally in their mobile wallets, aligning perfectly with Amazon’s digital gift card offerings.
- For four consecutive years, Amazon’s gift cards have been the most requested during the holidays.
With 64% of consumers purchasing gift cards as holiday gifts, a surge of redemptions on Amazon is guaranteed starting December 25.
Timing Is Everything
Post-holiday trends reveal that 38% of gift cards are redeemed within the first month. The period between December 25 and mid-January is a golden window for sellers to boost sales. Beyond gift card redemptions, many customers also return unwanted gifts, leaving them with extra store credit to spend on your products.
Why This Matters for Sellers
Gift card users are not your average shoppers. They bring unique behaviors that sellers can leverage:
- 61% of gift card users spend more than the card’s value, with an average overspend of $31.75.
- They’re 2.5x more likely to pay full price, thanks to the “free money” mentality.
- 34% visit listings they wouldn’t have considered otherwise, introducing new customers to your brand.
- They’re more likely to make impulse purchases, increasing cart values.
For sellers, this means higher sales, reduced price sensitivity, and the potential for acquiring loyal, repeat customers.
Turn Gift Card Redemptions into Your Sales Edge
To capitalize on this opportunity, here’s a strategy to turn gift card redemptions into a powerful sales driver:
Create an Exclusive Post-Holiday Offer
Promote a discount specifically targeting gift card users. For example:
- Offer 10% off for customers who use gift cards to purchase your products between Dec 25 and Jan 31.
- Use a promo code like “GIFTCARD10” to make the offer appealing and trackable.
Highlight the Offer Everywhere
Ensure maximum visibility for your offer:
- Include it in your product image stack on Amazon.
- Run targeted ads promoting the deal.
- Share the offer on social media and through email campaigns.
- Mention it in forums, blogs, or wherever your customers spend time online.
While there’s no way to directly verify whether a gift card was used for a purchase, the goal is to create a differentiator that encourages shoppers to choose your product.
The Economics of Unused Gift Cards
Did you know that 43% of Americans have unused gift cards, amounting to an estimated $23 billion in unspent funds? While unredeemed balances benefit retailers through breakage income, the focus for Amazon sellers should be on maximizing redemptions to:
- Boost sales volume
- Build customer loyalty
- Create repeat buyers
Encouraging gift card users to spend on your products not only drives immediate revenue but also builds long-term brand equity.
Be Ready for the Surge
With Christmas just two days away, now is the time to prepare for the post-Christmas rush. Here’s how to ensure you’re ready:
- Optimize Your Inventory: Ensure popular products are well-stocked to meet increased demand.
- Launch Targeted Ads: Focus on campaigns targeting gift card users and holiday credit holders.
- Enhance Your Storefront: Highlight seasonal promotions and exclusive deals.
- Add New Products: Give shoppers fresh options to explore.
Positioning your products as the go-to choice for gift card users could make this season your most profitable yet.
Final Thoughts
The post-holiday gift card redemption wave starting December 25 is a golden opportunity for Amazon sellers. With strategic planning, targeted offers, and optimized listings, you can harness this surge to boost sales, attract new customers, and build lasting loyalty. Don’t let this hidden hack slip by—prepare now and make the most of this lucrative season!
