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Etsy to Introduce Gift Cards

New feature is the first to be incorporated into direct checkout.

Etsy announced it will offer gift cards—a popular holiday present—starting in October as the first feature built into its direct checkout.

Shoppers will be able to redeem gift cards only when they pay for items through direct checkout. Direct checkout launched in February and allows buyers to pay for products without leaving the site, writes Natalie Schwartz, an Etsy product manager, in a blog post.

She says adding gift cards will allow the marketplace to be more aggressive in its marketing efforts by giving cards to partners and creating promotional offers.

Schwartz adds that any Etsy shopper can buy a gift card using a U.S. credit card.

“You can email the gift card directly to a friend or print one out to give in person,” she continues, noting that gift cards credit will come in the form of a code, which buyers can use when they buy from any store that offers direct checkout.

Direct checkout proves popular

More than 100,000 stores have signed up for direct checkout since its debut, and have processed more than $50 million, reports Adam Brown, Etsy’s press manager. He adds that direct checkout is popular among shoppers, who often spend more when they use it.

In fact, the average order paid for with direct checkout was $2.50 more than orders that didn’t offer it. That number jumps to $4.50 more when buyers could choose between direct checkout and PayPal. Buyers were also 16 percent more likely to complete transactions when direct checkout was offered, Brown adds.

He also notes that, in August, new stores that offered direct checkout sold 19.3 percent more than new shops that didn’t offer this feature, and when stores gave buyers the option of using direct checkout or another payment option, 47 percent went with direct checkout.

“Direct checkout has a lot of momentum, and we’re thrilled to be announcing Etsy gift cards, the first product built on its platform,” says Camilla Velasquez, Etsy’s director of payments. “Heading into the holiday season, shoppers and sellers will benefit from the ease of our seamless, centralized checkout process.”

To encourage merchants to sign up for direct checkout, Etsy says it will waive credit-card processing fees through Sept. 30 for all merchants.

Brown notes that Etsy is “quickly adding new features” to direct checkout based on seller feedback. That includes looking at allowing merchants to print shipping labels directly from Etsy. He adds that Etsy is working to offer direct checkout to international shops.

About the author

Olga Munoz
Olga Munoz is editor of TheOnlineSeller.com. In addition to writing news and feature articles about e-commerce, selling trends, online marketing and other topics of interest to online sellers, Olga manages the site's social media efforts. A journalism graduate of Chico State, Olga says her favorite part of being a journalist is learning interesting facts that help put stories into perspective, attending industry events and meeting interesting people "that leave you smiling, even in tough situations." Opinions expressed here may not be shared by The Online Seller and/or its principals.



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