Another survey disclosed that a large portion of people are more likely to buy a gift card during the holiday season once it's been recommended by family or friends. The Xbox brand is one of the most popular and favorite gaming brands where Xbox gamers love to spend real money on e-gift cards to make their gaming experience unforgettable.
In the digital world, e-gift card trading and exchange services are divided into two main types. The first service is known as the "sell service," in which the seller is provided with the money in return for their unused e-gift/credit balance before the card's expiry date. The second service is known as the "buy service" or "exchange service." An e-gift card exchange service helps to connect the buyer with the seller/holder of the card by acting as an intermediary firm that guarantees the trade agreements between the buyer and the seller. This paper is dedicated to offering a comprehensive review of the Xbox gift card sell and gift card exchange services available out there. Consequently, the following features are considered in this analysis.
Background and Significance
In 1994 and 1995, Blockbuster and Neiman Marcus used the idea of gift cards to boost their sales. Now, gift cards occupy a prominent place of importance in the gaming industry. With Microsoft's Xbox, you can do pretty much anything: chat with friends, relax with online multiplayer games, stream videos and music, and buy new games through the Xbox online store. One of the smartest things Microsoft did to grow a very loyal fan base is develop an Xbox ecosystem. In 2003, when the original Xbox was struggling, Microsoft started offering its users the chance to bid on exclusive merchandise and game-related items. This was when an Xbox
Research Design
The analysis of Xbox gift card selling will occur during the months in 2022. The selected research design involves a combination of a qualitative approach, including reports and surveys with those familiar with retail environments. The interviews will adhere to standardized open-ended questions that pose three strengths and weaknesses of a variety of Xbox gift card exchange options. After the interviews, prominent themes in interview responses will emerge. All steps of the research design have the ability to be tracked to ensure fair and appropriate use of information. Adhering to ethical guidelines is essential when researching gift card retail exchanges.
Data will be analyzed through report tables to determine the dominant strengths and weaknesses of different approaches to selling Xbox gift cards. The combination of interview and survey data will provide an accurate assessment of the effective and practical value of these tactics. A structured encounter with information will provide an accurate view of retail exchanges and an informative base in academic research or further development of Xbox gift card retail methods.
Data Collection
A cross-sectional dataset was collected to carry out this study. Data was gathered from both primary and secondary sources between March and April 2022. Primary data was collected through consumer surveys. The secondary data includes information from various academic literature. The study was conducted with no specific context or case. Random sampling was used to access participants in the survey. The target population for the survey was any individuals who have some experience in trading via an online gift card selling platform. This criterion points to those people who have either sold or exchanged a gift card online.
With a focus on increasing variability through targeted recruitment, a diverse set of participants from several demographic backgrounds was included. The survey was conducted among participants from various professions as well as different income brackets, and some are currently students. Additionally, consent for participation was granted on a voluntary basis. Before participation, participants were informed about the purpose, scope, and significance of the research. The acquired data has been thoroughly scrutinized to ensure its integrity. Due to the survey being voluntary, participants were included only after granting full consent. Furthermore, the accuracy, as well as objectivity, of the research is important and is reflected throughout the data-handling process. The data is collected through an ethical perspective and will be presented in a form only pertaining to the writing of the paper.
Overview of Gift Card Industry
To begin with, the gift card industry is in a strong position as of now. The way people are perceiving insights is currently more inclined towards worry-free experiences as well as enjoying life. Another general belief in the industry is the convenience of gift cards. These cards are generally given as gifts during events and when there are sales, even for the team at a company, so that they can use these to buy goods in any of the particular retailer’s shops rather than at specified shops. The gift card market has grown significantly due to these findings.
It should be noted that gift card sales are predicted to achieve an outstanding level of US$ 221 billion by the year 2024. The gift card market is expanding in the right trajectory and in the right way. Meanwhile, to be precise, the gift card merchant and the gift card buyer are winning in different ways. The market size of gift card sales has likewise been undergoing exponential growth over the years, and by the year 2021, the gift card market was positioned to have achieved a market size of US$ 222.571 billion. Some of the leading companies that are involved in the gift card sector are transforming the whole system of trading and bringing a whole new experience. Local, statewide, and international gift card exchange platforms are operating globally, to name a few. A leading merchant service provider is the gift exchange service. Social media has also played a significant role in influencing the gift card industry. Digital gift card services are another trend that is emerging.
Market Trends
People worldwide are purchasing more digital gift cards than ever before. Digital gift card sales have increased by 15.6 percent over the last year, with upscale digital shoppers accounting for the majority of gift card sales. The research indicates that 55% of computer users have used a digital gift card, and the display and accessibility of digital cards lead to an increase in demand for the cards needed. P2P gift cards from social networking platforms are unhealthy and less secure; other cards are not redeemable, carry secret privileges, and hinder sponsorship. To reduce the complexity of time and location travel, many recipients have requested that the cards be sent to them. The economic shift is the sales catalyst for the other cards at stores and in the retail market. This figure is important to understand whether changes in networks and channels are seen as a framework for consumers to respond. Ongoing breakthroughs in the retail and gaming environments have supported market growth. Career marketing stages are only one example. Advances have accelerated the introduction of value-enhanced services. The text suggests new ways of expanding building capabilities and consolidating distribution channels.
Key Players
Today, the players in the market of potential buyers are existing gift card exchange platforms, gift card exchangers, and consumers who trade Xbox gift cards on these platforms. Additionally, for the Xbox gift card market, some typical, representative, or unique platforms may serve as a bridge or buffer, such as gift card selling service platforms and online stores. Given that many of them are small and medium-sized internet companies, local-based e-commerce exchanges may still need time as they are seldom verified throughout the available possibilities. Consequently, these platforms are mainly reaching customers who are Xbox gaming card holders through communities of interest as the early adopters. In many cases, a platform sometimes plays the role of a buyer or seller for the purposes of market experiments.
More attention should be paid to large corporations and established companies that have achieved considerable success and strategic technological and operational capabilities. For example, a household brand that markets Xbox devices has performed very well in the international market. Furthermore, this company owns the IP rights to the Xbox gift card. At the same time, given recent merger and acquisition activities and third-party connections, the revenue generated by an individual party through the B2B business model may be smaller. The competition from existing Xbox card exchange websites is fierce. Meanwhile, Xbox and third-party exchange websites profit by allowing one party to buy low-priced goods while selling them at a higher price. Brand new online card exchange systems play the role of card purchasers and sell off the cards at their high trading rates. Apart from the exchange marketplaces, some other initiatives are only accessible to enable the purchase of Xbox gaming cards. Their promotions, however, have been included in a relatively extended group in other places. Given that all online exchange strategies concentrate on the Xbox card purchase function, some have been featured by various card trading platforms. For large gift card exchange platforms, Xbox gaming gift card companies will also appreciate such opportunities and make purchases. Some specialized cross-platform exchange features are also available that enable more than one type of card to be exchanged for another. In a bid to attract more clients to such markets, multiple exchange features should be accessible. In order to execute a card exchange, sites focused on selling different types of content, such as headphones, films, and fitness equipment, can be designed to service the market. Some brands list gift cards to enable sales, while others do the same job for a percentage of the retail price of the product sold.
Understanding Xbox Gift Card Sell
Xbox gift card sell refers to the business transaction of acquiring Xbox gift cards from a seller in exchange for cash or through barter. The recipient can redeem the card from the Microsoft online store and use the card as a form of payment when they check out.
The cards have no expiration date, and there are no maintenance or service fees. This could make the card even more appealing to gamers. Those that would like a gift card to this section will benefit greatly, while others probably will not benefit if they do not intend to play games through this outlet.
Features and Benefits
The key feature of an Xbox gift card is that the recipient has flexibility in their gaming purchases. A gamer who receives these cards can use them to buy current games or new releases. Downloadable content can also be purchased with an Xbox Live gift card. DLC customizes a game with new characters, maps, game modes, and more. When creating a character, the gamer can make a standout avatar by choosing special appearance features that a DLC provides. Likewise, in many games, the feeling of accomplishment is heightened by playing on new levels provided by a DLC. Finally, Xbox gift cards are user-friendly because the purchaser does not have to know what games someone likes or what games they already own.
A gamer receiving an Xbox digital gift card can use the available balance however they desire. Businesses also sell Xbox gift cards at a discount or provide dollar amount discounts on future purchases if a customer buys a gift card, effectively decreasing the face value to the purchaser. Although anecdotal, indicating a gift card balance is a way to encourage and support gaming during a time period for someone who may have thought that gaming takes away from more important activities in their life. Whether discounted or full price, the purchase of a card for someone else creates a shared experience because it confirms that the gift-giver recognizes and supports the gaming habit of the recipient. It serves as a way to stay connected with the recipient and keep them happily playing the game. Gifting a card also serves the purpose of encouraging, if not enticing, the recipient to purchase a new game. This is especially true when the gift card is for a platform or console that the recipient currently does not own, potentially increasing the market share of a console. More broadly, gifting an Xbox gift card supports ownership gaming by close friends and family members who may or may not be gamers. A card gift allows the gift-giver to invest in someone's gaming behavior and preferences. It creates a ripple effect, particularly for grandparents and parents who often form their smaller gaming community among their social networks. Buying a gift card includes the gift giver because it reaffirms their positive behavior, provides a gaming experience with someone they care about, links the purchase to their loved one's gaming habit, and communicates with that person that they can spend the money how they like. The data show that it is common to play games with someone close to the gamer regardless of age and marital status. Overall, the purchase of Xbox gift cards through a friend, family member, or oneself offers a variety of benefits. In some ways, owning an Xbox gift card aligns with players' psychographic preferences and interactions with others in the context of the game. It's simply convenient and allows you to play, as one player stated, "with your friends without the effort."
Limitations
The sale of Xbox gift cards has many limitations. However, many might present it as an imposing constraint; therefore, it should not push a replacement to be considered. The limitations include the following: Xbox gift cards are non-transferable, non-reloadable, and accessible only if you reside in one of the serviced regions. In addition, their funds expire five years after the date of issuance. Xbox gift cards have a no-refund policy, and their funds are subject to the terms. Full-priced items are the primary goods and services that Xbox gift cards can purchase. When customers make a purchase with them but do not finish the transaction, the balance of the Xbox gift card has been spent. This is when refund disputes can arise. It also involves not having a physical store to find in a central area of a town to grasp the customer's attention. In a time of fraud or scam, the Xbox gift card will not be able to fight against the users' account recovery action. This is only a good feature if you have a good internet security application installed on your device.
In a sale transaction, the most important limitation to keep in mind is the trust issue for the customer. Whenever a good reason goes wrong and the client does not receive money from the sale to the gift card service provider, the customer satisfaction regarding the merchant will be affected. Hence, this limitation might hold the Xbox gift card market at a dangerous risk. Understanding the possible limitations is vital for both sellers and clients, since it may also be considered a hassle for the clients.
Exploring Gift Card Exchange Services
There are various ways to exchange the Xbox gift card for cash. One of the easiest ways is to use online gift card exchange websites or apps that allow someone to trade in the unwanted Xbox gift card for cash. It allows both users to sell gift cards for cash, and retailers may choose to accept the exchange if they no longer want the gift card. Most gift card exchange websites are marketplaces, so they depend on users to choose a buyer. Once the seller finds the best deal in the market or the closest price he is willing to cover the charge, the seller can choose his preferred method. It will range from direct transfer to checks.
There will be a great deal to sell to a traded brand because of its reputation, customer support elements, fees, and time frame to complete a transaction. There are also a few cons, for example, a reduction in the face value of the card, an unsustainable marketplace, a negative variation in quality, especially lowering the customer’s prices, and fees. Gift card exchange services are a quick and easy way to exchange someone’s gift card for an Xbox and/or cash via a transaction. A few exchanges allow the buyer to receive the funds in cash so that the buyer can use the gift card without spending it. Some of the current options for buying an Xbox are PayPal and Amazon discount gift cards. They also process all exchanges as quickly as possible. In most cases, the seller’s delivery will be available within 15 minutes.
Some of the various platforms for Xbox gift card exchange services are Oncard cash, P2P exchange, Gameflip, and the Golden Gifter. An exchange can have several benefits of selling a gift card at the highest price. Since this market is much smaller and has more variety, there are many factors to consider when selling a gift card. All substance will vary. In addition, even if it may seem like the best place to sell a specific gift card, chances are that the card won’t sell with the best offer if the customer can’t access the page. A large group of individuals seeking to sell gift cards in Europe will no longer find use in NZD. In simple words, the cost of a gift card in dollars during the program can be very unfavorable. The result can be reduced by removing negative issues, which will make it even more difficult to apply.
Types of Services Offered
Numerous retail chains provide an exchange service to allow customers to purchase electronic gift cards for specific stores or brands using unwanted gift cards. A wide range of online gift card exchange platforms are also available for selling gift cards for cash or acquiring e-gift cards for different online and physical stores. Additionally, several online services offer peer-to-peer options, acting as mediators for both sides of the transaction by providing the necessary guarantees and arbitration. With such a wide range of options and easy access to both tools and users, it is unlikely that gamers will be unable to use their unused Xbox gift cards. In this section, we outline the different options available to them, identifying their respective advantages and limitations, and discuss cases in which one approach may be preferable to the other. Some frequent online gift card exchange service types and platforms include:
Institutional platforms: In this case, users can exchange their gift cards via an online platform that acts as the intermediary, providing the guarantee of a secure operation for both parties. Goods can be deposited into the platform by sellers or potential buyers and, depending on the method used, either exchanged with the platform for a gift card of the buyer’s choosing or cashed out as a voucher for spending in their online stores. The range of branded shop cards on offer for trade, as well as the fees (which differ according to category), make it possible to trade gift cards from both large and small businesses on these websites. Trading gift cards on this potentially convenient platform may result in a rather substantial revenue reduction for users as, typically, they charge a percentage of the gift card’s value in exchange for the mediated transaction.
Comparison with Traditional Selling
Comparison with Traditional Selling — The previous subsection provides the procedure of the selling process of Xbox gift cards in Nervos. The difference between selling and trading should also be important to consider. Our contribution facilitates the user's decision on which way to handle their gift cards. Gift Card Exchange vs. Traditional Selling. The pros and cons of gift card exchange have to be compared with the traditional approach. 1) Convenience and speed. Traditional services typically involve longer processing times than e-commerce and gift card trade-in. It may be difficult for those involved in sell operations to get value that could be used in a timely manner. 2) Consumer preference and behavior. A survey of the two biggest providers of gift card trade-in services has been conducted. Rather than a straight one-to-one card contract, gift card holders prefer more financial equivalence. 99% of respondents say that they have a suitable or very poor candidate for a gift card exchange. 3) Automatic access. Some parts of the shop have a longer purchasing or payback period. Trade-ins may be the perfect solution to improve your business for the customer. 4) Association. Sometimes the value of exchange platforms is part of a bigger range of services. Some large operators also enable multiple trade-ins. 5) Rates and risks. These professional third-party services levy a total charge to change in their currency and carry the risk of price losses if transaction rates vary. Owners of certain websites indicate that exchange services are not suitable. This is just an example. It may be unsuitable for purchase. Often, when these are donated cards, they carry an inactive fee. Since they are not returnable, they can occasionally be "lost" when the newcomer carries the card.
Pricing
Many platforms use a dynamic pricing model to increase their turnover. For a buyer, it is more beneficial to exchange large sums of money, but not always. This is usually implemented by applying fees on transactions, ranging from around 1% to 5% of a given total on both sides. Additionally, it is nice to provide an extra price comparison service for the supported regions, as not all platforms show their price lists. Thus, in our study, we identify those platforms that provide an extra service of cashback as well. Sometimes exchange services even apply bonuses and hot offers, as well as cashback in the form of fiat currency. Detailing the price lists of every platform is needed as users compare the prices with the actual market inflection points, where the price increases.
Because the platforms have users from all over the world, we do a conversion to USD, as it is the most acknowledged fiat currency and gives insights on the lowest price a service could provide to their users. Further, by adding the highest fee of 5% on top of this value, we give the highest possible price for sell offers on the platforms. This is essential as available cashback increases at some platforms when you convert more USD into the currency. This shows the fees that buyers can save by trading larger sums of money. Both dynamic prices and fees devoted to every platform show a final price that is to be paid also by the seller, as the platforms state the amount available for withdrawal. Thus, services with higher fees and without discounts related to volume trade are perceived as more toxic in the eyes of potential users and excluded. This is the correlation of a premium service based on price/quality trade-off.
Impact on Consumers
The choice in the extent of the impact of Xbox gift card selling and exchange services on consumers lies in the financial implications such as saving money, the convenience of using gift cards as part of their shopping, savings on an expected or planned future purchase, or the force behind using gift cards either as a loan or as a compulsory pattern of consumer spending, thus having addictive characteristics. In addition, the convenience pattern used in selling gift cards – in particular, the trend in companies partnering with supermarket chains is believed to bring about some coverage for outsourced stores to a large degree.
In previous studies, findings are guided firstly that savings play a key role for consumers in an experimental setting about gift card sale and exchange in a market. The majority of the consumers – for instance, 71.7% in a group use gift cards as cash flow. The revenue of consumers, including direct or indirect results of using gift cards, can reach a percentage of 32%. Secondly, generally small price discounts demand a high level of savings parity, where an even greater purchase volume is required to highlight the consumer’s preference for the gift card exchange business, which reflects a very low consumer support for the gift card exchange business. This convenience will not only offer consumers partial refunds of their purchased merchandise but potentially generate traffic and increase potential purchases as well.
Financial Implications
A key driver for consumer participation in card selling and exchange processes is the potential for financial gain. Minimizing household expenditure is an ongoing incentive for a large segment of the consumer market. By selling Xbox gift cards that were purchased at a discounted rate, consumers can potentially save between 0-80% of the face value of the gift card, depending on merchant-specified promotions, discounts, loyalty programs, or site-wide promotions. For large-value gift cards, a cashback program may offer the consumer an amount proportional to the purchase price of the card, up to the face value of the card in some cases. Conversely, when exchanging card value for cash or other gift cards, participants face potential monetary loss in the form of expiration fees, brokerage fees, or low-ball offers. For this reason, the decision to exchange can be compared to the loss to evaluate if the choice is optimal or suboptimal.
Consumers can incur so-called death or dormancy fees from some merchants if they fail to exchange the gift card in a predetermined time period, as stipulated in the merchant's fine print or terms of service. There is potential financial benefit for a consumer using card exchanges services for immediate expenditures due to this time restriction. Financially inclined participants will base their choice to buy and sell or exchange gift cards in part on the expected return, combined with the probability of selling the card and the time delay associated with either process. A person's consumption of gift cards is increased by their liquidity levels. An economic model examines the liquidity effects of a suboptimal spending spree.
Technological Advancements
Various technological improvements have been made or are ongoing that affect Xbox gift card services. This is necessary to keep up with the changing payments landscape. Digital payment methods are already turning to being completely cardless, and younger generations are starting to expect and seek entirely digital services. Additionally, the greater use of application program interfaces and significantly increased smartphone ownership and usage are creating an app-driven society. These services are essential to maintain competitive offerings and avoid exclusion from current and future gift card users.
