What is Third Party Distribution/Gift Cards

You have seen third party distribution when you’ve walked past the gift card displays at your grocery or pharmacy but may not know it by name. Third party is a common term in the B2B Gift Card Industry. It’s the opportunity to sell gift cards in retail locations that are independent of the brand represented on the gift card.

By definition, third party sales refer to the three companies involved when selling to the consumer: the brand on the gift card, the company that sells the gift card, and the company that manages the operational component of the transaction.

For most gift cards programs, third party represents their largest sales channel and the greatest opportunity for consumer awareness and marketing. Why’s this? Consumer traffic!

Participating in third party sales ensures a gift card brand captures the full share of the sales. Each gift card sold also represents a guaranteed future sale. Beyond actual sales, gift card brands can leverage the marketing opportunities available through many third party distributors.

When working on your strategic plan for developing your Gift Card program, we highly recommend that you include the Third Party Distributor option into the model.