Tbay Released to Understand the Current State of the Second-hand Gift Card Market

The second-hand gift card market is trending well which is good news for people who have second-hand gift cards. End Quote

(1888PressRelease) June 11, 2021 - With all the festivities coming up, people are inundated with a wide variety of gift cards and digital coupons from friends and family. Gift cards may be a relief for the gift giver to not have to struggle with what exactly is the right present to give, and it is a popular gift for the recipient to decide for themselves what to buy. With the growth of the gift card market, do people really understand the second-hand gift card market? This article is about understanding the current state of the second-hand gift card market and thinking about why people need to sell their second-hand gift cards as soon as possible.

Here are the statistics about the industry, which was extracted from the National Retail Federation. It draws a clearer picture of how big the gift card trading market is? How many gift cards go unused each year? How much more customers will spend than the balance in gift card? How many traders get their first pot of gold from this industry?

1.$160 billion in gift cards being issued
How big is the market for gift cards? The National Retail Federation estimates that the total value of gift cards issued during the holiday season will reach $27.6 billion, and that's just for the holiday season. Gift cards are also used for other occasions, such as birthdays, and total spending for the year is estimated at around $160 billion, an increase of nearly 37.5 percent over last year.

2. $1 billion in gift cards go unused
About 90% of gift cards are used quickly within 2 months of receipt. What about the other 10%? Sure, some cards are used later, but many of them never end up being used. According to the Tower Group's CEB, about $1 billion in gift cards go unused each year. Most people might think that businesses like it when customer don't use their gift cards, and that's certainly true, which is one of the reasons merchants issue so many gift cards. However, to the customer, if a $50 card goes unused, it means the customer didn't enjoy $50 worth of goods or services, and thus is very regrettable for the customer.

3. Spend 50% more money
If people don't use the gift card, they can sell it for cash. Although the price is certainly less than the face value of the gift card, people are getting some of the cash after all, aren't they? If people buy something they don't need because of the gift card balance, they may spend more than the face value of the gift card, and about 72% of customers will spend between 20% and 50% more than the gift card balance.

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