Online gift delivery applications make it possible for the travelling husband to send flowers to his wife on her birthday or the lonely grandparents can cheer up when their grandson sends them their favorite sweets on their anniversary or a small cake from the boss can make an employee’s promotion feel more real during the work-from-home phase.
Our loved ones are now dispersed around the world because of better career opportunities and lifestyle choices. So, it is not always possible to visit them to celebrate the little joys of life. Gift delivery applications are the perfect solution to this problem.
Now that the world has to go through this never-ending pandemic phase, delivery applications have come to the rescue, thus becoming more popular and acceptable than ever.
More and more industry leaders are gradually showing interest in on-demand delivery applications that can cater to the delivery needs of respective target audiences.
Gift Industry Is No Exception
While gift deliveries were common in the pre-COVID times, they have gained quite a momentum during 2020-21. People were able to send gifts to their families and friends who they could not visit and still made them feel valued and loved.
It is without surprise that a greater number of gift shops are opting for gift delivery app development to create easy-to-access platforms to increase customers' user experience.
About 86% of the consumers partake in online on-demand gift delivery through e-commerce apps and sites in the United States.
So, let’s delve further to find out how you can begin your online gift delivery business.
Understanding On-Demand Gift Delivery
On-demand gift delivery refers to online gift shopping; users place orders and recipients get the products delivered directly at their specified locations. They can order the items they require through the gift sending app and select the date and time for the delivery.
Shoppers can also choose to customize the gift items with personalized notes and gift wrapping sheets as per their liking.
Consumers opt for online shopping more frequently in the current period, with approximately 25% of Americans visiting an online store at least once every month.
Owing to this, many gift-oriented businesses are branching out their selling services to e-commerce platforms. They offer options in terms of products, such as flowers, chocolates, and gift baskets. Brands offer special offers during holiday seasons, and this medium is growing in popularity due to the ease of use.
While it is easier to start selling on e-commerce platforms, gift shop owners are starting to create their own platforms because of the specific target market and their delivery preferences.
Business Models For Gift Delivery
There are three major business models that gift shops can opt for during gift delivery app development.
Business to Consumer (B2C) Model
This is the most common business model for on-demand delivery apps for online gift shopping. Such apps connect the sellers and customers; the former sell the products and services to the latter. Businesses that can offer direct product delivery services can use this model for app development.
Consumer to Consumer (C2C ) Model
New sellers or individuals selling gifts to other users can opt for this model. In this, there are no brands involved; customers selling home-made gifts can use an e-commerce app, like chocolate delivery or cake delivery.
Business to Business (B2B) Model
The B2B model connects businesses to businesses. This is an application for manufacturers who supply the products to a shop or store for physical delivery. This connects the vendors and sellers, and not the end-use customers.
What Does Your Customer Need?
Businesses and sellers developing gift delivery apps need to understand their customers' demands first. It is predicted that by 2021, 54% of all global sales would occur predominantly through mobile apps. Thus, the sellers need to deliver the requirements of their customers accurately, compared to other sellers in the market.
Online shoppers when browsing through the best gift delivery app look for features like several gifting options, easy order placement, personalization, delivery tracking, in-app communication, easy payment options, and date and time selection. They demand quick responses, a wide variety of gift items, and an intuitive interface.
The following are some of the main questions you should focus on to understand customer requirements.
What kind of services are the customers looking for? Which features are their top priority picks? How is the customer reception for the apps of your competitors in the market? What features are they offering?
If you already have an app, how is it performing for your current customers?
Focusing on the answers to these questions, you can build an effective app that improves brand image and increases revenue.
Revenue Models/Monetization Strategy for Gift Delivery Apps
Creating a reliable monetization strategy is crucial for earning profits through your gift delivery app. Here are four useful revenue models that you can choose to implement in your mobile application:
1. Advertisement
One of the most effective revenue models for gaining a higher profit margin is through advertisements. Here, app owners can partner with other brands to show the advertisements of the latter on their platforms.
This works when the businesses have the same target audience; for example, online stores selling flowers can partner with event planning businesses.
2. Sponsored products
Brands with their customized send gifts app can use the sponsored listing function. On the homepage, app owners can add the sponsored products at the top listing areas like "Bestsellers" or "New Releases".
These categories get higher customer views that turn into leads. You can charge a weekly or monthly fee to the sellers who partner with your brand for sponsored ad promotions.
3. Membership
The gift industry operates mainly based on the occasions and events occurring annually. Customers who buy gifts would appreciate the opportunity to become a member of your brand to get first-priority gift benefits and discounts on products.
You can charge a fee amount for the membership and add valuable offers like a free delivery service. Also, you can offer the members exclusive admission to premium gift options.
4. Additional services
Brands that offer extra services to their customers can charge a set fee. These include the service of one-day delivery or night delivery for birthday gifts. Also, you can set fees for the other additional services you provide.
Features To Look For In A Gift Delivery App
Simple categories - Customers prefer easier access to gift options and multiple choices. For this, you should offer an easy-to-navigate category listing for a smoother user experience for customers. They can choose through categories like product types, brands, prices, occasion types, number of reviews, and ratings.
Order placing - Customers require an easier interface for order placement in terms of selection and checkout. Platforms should provide user-friendly order placing pages through which users can add selected items to the cart, and add data like name, landmark, delivery address, gift wrap option, and delivery time.
Live Chat - Brands should add live chat features for customers to get instant help with their order complaints and issues. This improves customer experience.
Order history - With this feature, consumers can view their previous completed deliveries and place re-orders, if necessary.
Delivery and shipping - Customers who use gift delivery apps need the ability to select the specified date and delivery timing. App developers can add a section for one-day-delivery products for easier access and ordering.
GPS support - Vendors opting for delivery apps need a management center for tracking the total packages. As for users, they require GPS support for tracking the route and ETA of delivery agents on the date of delivery.
Testimonials and reviews - This section includes past reviews from customers who have used the branded app for the gift delivery. Statistically, 56% of customers decide to order online after reading the user reviews and retailer recommendations.
Content management - Through this feature on the admin app, sellers can add or remove the content information about their offered services/products. They update delivery options, price changes, and contact information.
Personalized gifts - Customers demand the ability to personalize the products they are ordering for the recipient. This includes adding a message, gift card, the name of the recipient, and images. Thus, brands offer a dedicated section for the users to customize the orders.
Social media login - Logging in with social media accounts makes the sign-up process easier for users.
Real-time tracking - For the admins, this is useful for tracking the real-time order delivery options and data. These cover the time for delivery, driver behavior, and order cancellations.
Payment options - For payment, offering multiple payment gateways and currency options is necessary for the users. Brands need to add secure payment algorithms for reliable service.
Multiple languages - Brands with international shipping availability should integrate multi-lingual alternatives for the global target audiences. This increases customer reach, user satisfaction, and overall revenue.
Blog - You can add a section for blogs on your branded app or website. That would improve your brand's SEO ranking in the search engine page results and bring higher customer traffic. Adding blog topics about best gift ideas and promotional articles with product links would increase customer interest.
Return policy - In case the gifts are damaged or do not meet the customer's requirement, having a reliable return policy is a fail-safe. This would build customer's trust and brand loyalty indirectly. Add a refund or replacement policy in case the delivered product was in a damaged condition before delivery.
Bottom line
Businesses in the gift industry have already started using online sales options for increasing brand awareness, customer reach, and sales profit. That said, it is crucial for all brands to understand how an on-demand delivery app can make a huge difference in their strategy.
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