Top 9 Reasons Why E-Commerce Retailers need Gift Cards at Christmas

The Christmas season is a pivotal time for retail e-commerce businesses, and gift cards have emerged as one of the most effective tools for boosting sales and customer satisfaction. They offer convenience for shoppers, increase revenue for retailers, and attract new customers to brands. Let’s take a look at the key reasons why gift cards are indispensable for e-commerce during the holiday season, supported by recent statistics.

In this article we use research the top reasons why gift cards are essential for retailers at Christmas. Bringing in the latest gift card statistics so you can fully understand their importance and difference they can make to sales and customer statistfaction.

1. A Top-Requested Gift for the Holidays

Gift cards consistently rank as the most requested holiday gift. In fact, they have held this position for 17 years in a row in the U.S. According to a 2022 study, 43% of holiday shoppers planned to buy gift cards, with total spending exceeding $28.6 billion during the season. The average buyer purchased four cards, each worth $51​

The reasons behind their popularity are clear. For 72% of shoppers, gift cards allow recipients to choose their gifts, and 41% of buyers appreciate their ease of purchase and delivery. These attributes make them a go-to choice for last-minute shoppers and a practical solution for those unsure of what to buy​

2. Convenience for Last-Minute Shoppers

Gift cards, especially digital ones, cater perfectly to busy holiday shoppers. E-gift cards can be purchased and delivered instantly, avoiding the logistical challenges of physical gift purchases, such as shipping delays or stock shortages. Google searches for “gift cards online” spike in November and December, highlighting their role as a last-minute gifting solution​

3. Boosting Revenue Beyond the Holidays

One of the biggest advantages of gift cards for retailers is their potential to drive revenue. Nearly half of all gift card recipients (47%) spend more than the card’s value when redeeming it. This "overspending" increases the average order value (AOV). Additionally, gift cards encourage customers to explore the store’s offerings, leading to upselling opportunities​

Moreover, gift card redemption extends the sales momentum into the new year. While 56% of gift cards are redeemed within 180 days, many recipients use them in January or February, helping retailers maintain steady revenue after the holiday rush​

4. Customer Acquisition and Brand Awareness

Gift cards serve as a powerful customer acquisition tool. They introduce new shoppers—often gift recipients unfamiliar with a brand—to the retailer. Additionally, their ease of use increases the likelihood of redemption, and a positive experience can convert recipients into repeat customers. For example, 65% of shoppers prefer purchasing gift cards directly from the retailer, creating opportunities for brands to engage new customers and foster loyalty​

5. A Versatile Promotional Tool

Retailers can leverage gift cards for creative marketing campaigns. Some effective strategies include:

• Discounted Gift Cards: Offering a $50 card for $45 creates immediate value for buyers.
• Bonus Cards: “Spend $100 and get a $10 gift card” incentivizes higher spending while ensuring future purchases.
• Social Media Giveaways: Promoting gift card giveaways during the holiday season drives engagement and brand visibility.

These promotions not only boost immediate sales but also encourage repeat visits during redemption​