This is an important question to ask but nobody is answering the question for experienced Shopify merchants. This is it!
This is a question I often see floating around the internet.
It’s not a bad questions, business is about making money. If you want to make money you need to sell a profitable product.
The problem I run into is the answer.
Here is an example:
On this page, “Best Products to Sell on Shopify: What Top Product to Choose for Sale in 2023” they give a list of different categories of products to sell on your Shopify store. This is good for someone that doesn’t have a Shopify store but what about people that already have a store?
What about people that are trying to make their current store more profitable?
This questions isn’t answered anywhere on the internet!
I am here to help you.
The answer is sell more gift cards.
I know, that may sound bias. Especially coming from me "The Gift Card Guy" but hear me out.
Gift cards are the most profitable product to sell in your store because of three reasons:
The cost of goods sold of a product is how much a product costs to make. For gift cards, specifically digital gift cards, their cost of good sold is zero dollars. That means that some of them will be 100% profit.
This brings me to...
Reason 2: Breakage
Breakage is the “revenue gained by retailers through unredeemed gift cards”. This is great for profitability of a store for a few reasons.
This is the idea that it takes time for people to use gift cards. If someone buys a gift card they are typically not going to use the gift card in that moment. This means that you as the store owner have time to use the money that they gave you.
In the most conservative case you can put this money into a savings account. This will allow you to make a small percentage of profit from every gift card dollar that you sell. That said, if you are not risk adverse you could invest the money into something else that could be a lot more profitable.
Gift cards are essentially loans that have a 0% interest rate but can be used to make a greater profit.
With that said, I encourage you to go out there and increase your bottom line. We are all fighting to make more money in our businesses. This is is step one.
If you want to sell more gift cards. Click here to check out iziGift now.