Are You Still Using Amazon Gift Cards? Here Is Why It Might Not Be A Great Idea

Retail gift cards seem convenient, but hidden drawbacks like limited choices, expiration issues, and poor flexibility can hurt engagement. Discover why choosing a smarter, more versatile reward approach can create a stronger impact.

Written by Ganesh Ram, 8 May 2025

Several online retailers, including the big ones such as Amazon, offer digital gift cards as a way to shop or give rewards to employees, partners, and customers alike. Amazon and other retail gift cards are often seen as easy solutions for rewarding employees, partners, and customers.  

But beneath convenience lies a range of challenges that can limit your program’s impact — from restricted choices and inflexible expiration policies to poor recipient experiences and hidden costs. 

In this blog, we’ll break down why retail gift cards like Amazon may not be the best choice for your incentive programs anymore. You’ll learn about the hidden drawbacks, the risks to your brand experience, and why switching to a more flexible, comprehensive rewards platform could deliver far better results for both you and your recipients. 

 

Why do people opt for digital retail cards such as Amazon? 

Traditional physical gift cards have enjoyed a long run of popularity across the globe and remain viable on a small scale. But, today's digital gift cards are safer and more convenient than physical cards that were vulnerable to loss, theft, or fraud from duplication.  

For consumers, digital gift cards act as an excellent alternative to cash. End-users can add digital gift cards to mobile wallets to make purchases easier and more secure. 

Why Amazon (and other retail) gift cards aren't always the best choice 

Here are the drawbacks of Amazon and other retail gift cards: 

1. Retail gift cards offer non-flexible expiry options 

The reasons end-users don’t use retail gift cards vary. Some of them include: 

  • Forgetfulness. 
  • Losing the gift card. 
  • Lack of a holistic catalog. 
  • The gift card expires or comes with restrictions. 

Even if purchases are made with a gift card, there may be a small amount of money left, which, if not used, whether due to forgetfulness or inertia, ends up as money wasted. 

“Retail cards such as Amazon have a short validity period thus making it difficult for users to use cards after the shelf period.” 

2. Retail gift cards offer a limited choice for end-users 

According to Investopedia, closed-loop cards such as Amazon gift cards offer a limited catalog and can throw a wrench into your shopping plans, especially if you are looking for something personalized or customized to you. Retail gift cards also limit purchasing power because a buyer cannot redeem rewards in many places. While Amazon users can only shop from an Amazon Catalog, a digital incentive solution lets users choose from a broad, holistic catalog. 

Amazon cards or gift cards from other retailers are more utilitarian and may not evoke the dopamine effect on the recipient. 

Customized reward solutions, on the other hand, are tailored to the needs of your recipient. They appeal to the cause and the context of the respondent and resonate with them on a more intrinsic level than Amazon or Starbucks cards. 

For example, A respondent in an executive position would be more willing to accept a $100 charity donation to a Cancer Foundation rather than accept an Amazon gift card. While the $100 gift card is not going to compensate for their time, either way, an opportunity to contribute to a cause they care about, in this case, helps you win them over. 

3. Lack of support 

End-users using retail gift cards such as Amazon may have a tough time having a single point of contact, especially for customer queries. Each item in the catalog may have different terms and conditions and navigating them can be a potential landmine as an end-user. 

For large companies looking to execute a seamless incentive experience, a lack of customer support for retail gifting solutions may cause your brand to take a hit. It only takes one customer to leave a bad review of not being able to return a wrong purchase to ruin your company’s digital incentive program reputation. 

4. Unclaimed rewards 

When you buy a gift card from, say, Amazon for $25 in fungible cash, it can be redeemed later. But, not everyone redeems these gift cards. Studies have shown that over 25 per cent of all gift cards distributed are never used. 

Let’s say you never spend the $25 gift card on the Walmart Store that your friend gave you. Your friend paid the chain $25, and the chain didn’t have to provide you with anything in return. It netted $25 at a 100% profit margin. In other words, when not redeemed, your $25 gift card is free money for the company. 

While most people who receive a gift card are quick to put it to use as more than 70% of all gift cards are redeemed within six months of purchase, according to one survey. But after that first 180 days, the rate of use tends to stagnate. At the one-year mark, just under 80% of cards are redeemed — and as time passes, they are less and less likely to see the light of day. 

This leads to big online retailers such as Starbucks, Amazon, and Walmart getting vast amounts of money on unclaimed rewards. 

If you are exploring gift cards during the festive season or are looking to buy them for your firm, it helps to understand the drawbacks of gift cards and compare them with other rewarding platforms which don’t charge for unclaimed rewards. 

5. Online retailers such as Amazon do not offer flexible expiry options 

Companies and individuals have different rewarding requirements. The limited shelf life of Amazon or other retail gift cards puts the firms at a huge disadvantage, especially when they are starting to set up a rewards program for a particular use case and are figuring out what works for them. 

A company distributing incentives to employees would prefer reward points that only expire when the employee opts to leave the organization rather than a gift with a fixed shelf life. 

For the admins and CXOs, when a gift card expires abruptly, it also incurs a lot of money on unclaimed rewards.  

From the firm’s POV, this money is a loss and is better spent elsewhere. 

6. Amazon doesn’t provide detailed analytics on your incentives 

Crafting a rewards program isn’t easy. Not only do HR admins or marketers ought to prove the ROI on their reward programs for their higher-ups, but analytics also can determine the success of a reward program. Calculating data on reward redemption patterns, gifts that end-users opt for, etc., will help you understand the user behavior and update the reward catalog based on feedback. 

Online retail gift cards just don’t provide adequate data that helps you make the necessary call. 

7. Online retailers lack key features that help you make your digital incentive program a success 

  • Reward Scheduling 

Companies today use more than a dozen tools to interact with various stakeholders such as employees, consumers, partners, etc. It is imperative for reward solutions to schedule rewards from the flow of work based on complex conditions. 

A VP would prefer scheduling rewards for a sales team to achieve their targets from the CRM they already use rather than different software. 

Online retailers don’t let admins schedule/automate reward scheduling based on a particular milestone such as anniversary, birthday, etc. In addition to inconvenience, for admins and firms, it is a waste of time and money due to a lack of reward scheduling from their flow of work. 

  • Personalization 

Personalization can mean several things in the context of rewarding. The final “Moment of Delight” when the recipient receives a gift matters the most for admins. 

To achieve that, admins must personalize their reward campaigns based on the theme, brands, value, context, etc. 

This type of personalization is not possible with online retailers such as Amazon. 

  • Integrations 

According to Statista, an average company in 2020 uses 80 SAAS applications. It is imperative for companies to connect their reward solution to the tools they use every day. Integrating seamlessly with their favorite applications not only helps firms run smarter rewards, incentives & loyalty programs, but it also helps them track data and measure analytics & ROI in a single place instead of a fragmented reward program. 

8. Lack of DIY 

DIY is a critical feature that ought to be considered by marketers, product managers, and other personas in an organization. Admins should set up an ideal reward program within minutes, and campaigns should be managed with the developers' negligible help. 

Not only does a DIY setup save time and costs, but it also helps admins manage the program seamlessly without having to coordinate with multiple teams. 

9. Pricing options to suit different sizes of clients and needs 

Each company has different rewarding use cases, be it for survey rewarding or employee rewarding. 

Online retailers offer a one-size-fits-all solution that just doesn’t work for companies. Digital rewarding solutions such as Xoxoday Plum, on the other hand, provide multiple pricing tiers for companies of different sizes and use cases. 

10. The hidden hassles of sending Amazon gift cards internationally 

Amazon gift cards aren't interchangeable across countries—a US card won’t work on Amazon.ca. To reward Canadian prospects, you’d need to place a separate order, handle currency conversions, manage foreign transaction fees, and navigate different websites. 

It gets even more complicated in Europe, where cards like Amazon.de are accepted in some countries but Amazon.fr is restricted to France. Plus, in many regions, Amazon isn’t the top retailer, making your reward feel less relevant. 

Restricting promotions to select countries can frustrate customers—or worse, drive them away. 

A smarter solution? Use a global rewards platform that delivers digital rewards instantly anywhere with just an email address—no conversions, no regional barriers. Broaden your reach, delight more customers, and simplify your marketing—without borders. 

More options are always better 

While Amazon offers an impressive catalog of around 12 million products, it doesn’t always match every recipient’s needs. Many people prefer to use their rewards for groceries, pay bills, enjoy takeout, or shop in-person where they can try before they buy—things Amazon isn’t always ideal for. Plus, not everyone wants to shop exclusively on Amazon. 

That’s why offering more flexible reward options is crucial. Instead of limiting recipients, you can empower them to choose: 

  • Visa prepaid card: Universally accepted and seen as the closest alternative to cash. 
  • Gift card of the recipient’s choice: Let them pick their favorite brand or retailer. 
  • Experiences, dining, and wellness rewards: Curated for memorable and personalized gifting. 
  • Charity donations and subscriptions: For recipients who want to give back or invest in entertainment. 

 

Reward platforms: A better alternative of Amazon gift cards  

When it comes to rewarding employees, customers, or survey participants, retail gift cards like Amazon might seem like the easiest route. But in reality, reward platforms deliver a far superior, flexible, and brand-aligned experience—for both businesses and recipients. Here's why a modern reward platform outperforms traditional retail cards: 

1. Freedom of choice 

Retail gift cards tie recipients to a single brand. Reward platforms unlock thousands of options—across categories like retail shopping, groceries, travel, food delivery, charity donations, experiences, and more. 
Recipients get exactly what they want, boosting satisfaction and making your rewards more memorable. 

2. Higher perceived value 

A generic Amazon card feels transactional. A tailored reward experience feels personal. 
Reward platforms allow you to deliver thoughtful rewards that match the context—whether it's professional achievements, personal milestones, or festive occasions—creating emotional resonance and lasting impact. 

3. Customizable for campaigns and branding 

Unlike standard Amazon or retail gift cards, reward platforms let you personalize the entire reward experience

  • Add your brand logo to the reward page. 
  • Craft personalized messages and themed email templates
  • Build custom landing pages that align with your campaign’s tone and theme. 

This personalization not only delights recipients but also reinforces your brand presence in a more meaningful and lasting way. 

4. Better control and reporting 

Reward platforms offer powerful dashboards with real-time analytics to: 

  • Track redemptions. 
  • Understand recipient preferences. 
  • Measure the effectiveness of your incentive programs. 

Unlike retail cards, which offer no feedback loop, this actionable data helps you optimize campaigns, measure ROI, and make smarter, data-driven decisions for future marketing and engagement efforts. 

5. Cost efficiency and scalability 

Many reward platforms operate on a pay-only-for-claimed-rewards model. 
This saves substantial budget compared to prepaid purchases of Amazon or retail gift cards. 
Plus, you can scale campaigns easily across geographies and audiences—without worrying about logistics, inventory, or shipping costs. 

6. Stronger recipient satisfaction 

More choices, quicker delivery, personalization, and flexibility—all contribute to higher satisfaction scores. 
Satisfied recipients are more likely to stay loyal, engage deeper, and recommend your brand to others. 

 

How Xoxoday Plum offers a better rewarding and incentivizing solution 

When it comes to modern, flexible, and scalable reward programs, Xoxoday Plum goes far beyond traditional retail gift card options like Amazon. Here's why businesses of all sizes trust Xoxoday Plum for impactful rewarding: 

Global catalog of rewards 

Xoxoday Plum offers access to a vast and diverse catalog with over 10 mn+ choice of rewards across 100+ countries. 
This includes digital gift cards, prepaid Visa® and Mastercard® cards, exclusive experiences, wellness packages, donations, perks, and more. With such a wide variety, recipients always find something meaningful and personally valuable, regardless of where they are in the world. 

Instant virtual prepaid cards and gift cards 

Speed matters when it comes to rewards. With Xoxoday Plum, you can instantly deliver virtual prepaid Visa® and Mastercard® cards or thousands of brand gift cards via email, SMS, or WhatsApp. 
Recipients receive their rewards in real time and can start using them immediately—no delays, no waiting for physical cards, no shipping costs. 

Personalized reward experiences 

Unlike basic Amazon or retail gift cards, Xoxoday Plum enables full personalization of the reward experience. 
You can customize rewards by adding your company's branding elements such as logos, campaign-specific messages, themed templates, and even personalized landing pages. 
This personal touch enhances the emotional value of the reward, making recipients feel more connected to your brand. 

Analytics and reporting dashboard 

Xoxoday Plum provides a powerful analytics dashboard that tracks real-time data on: 

  • Reward redemption rates 
  • Recipient behavior and preferences 
  • Program success metrics and ROI 

Having access to these insights helps companies continuously optimize their incentive strategies, making them more effective over time. Retail gift cards simply don't offer this level of feedback or control. 

Seamless integrations with CRMs and workflows 

Xoxoday Plum integrates seamlessly with popular tools like HubSpot, Salesforce, Zapier, Slack, and Microsoft Teams. 
This means businesses can automate reward-triggering events such as form fills, survey completions, deal closures, anniversaries, or birthdays—directly from their existing workflows, saving time and manual effort. 

Only pay for redeemed rewards 

With Xoxoday Plum, you are charged only when a reward is redeemed
There are no upfront costs for unclaimed rewards. This pay-per-redemption model ensures that your budget is used effectively, with no money wasted on rewards that recipients never use. 

Ways to reward via Xoxoday Plum 

With a comprehensive reward solution such as Xoxoday Plum, you can give out rewards in the form of Xoxo Codes, Xoxo Points, or Xoxo links. Rewards can be sent individually or in bulk to end-users. 

Each reward mode has its unique features, and we will discuss which one you should choose for different use cases. 

Xoxo codes 

Xoxo Codesare transferable distinct alphanumeric reward codes available in standard denominations like 50/100/500 that can be used to gift or reward employees, customers, or channel partners.  

Xoxo Codes are appropriate for admins, be it HRs or sales leaders who are looking to use rewards where the end-user email id or mobile number is not known in advance. Some of the use cases are contests, consumer promotions and sales promotions.  

Key features:   

  • Quick & secure distribution: Send rewards instantly via email, SMS, or platforms like Slack and Microsoft Teams.   
  • No account required: Recipients can redeem their reward without signing up.   
  • Flexible expiry: Set custom expiration dates based on your campaign.   
  • Partial or combined redemption: Users can redeem part of the value or merge multiple codes.   
  • Bulk distribution: Can be generated and distributed easily across different channels.   
  • Physical delivery: Can be custom-branded, printed and couriered to customers.    

Utilize Xoxo codes for-   

  • Corporate gifting:   
    Use Xoxo Codes for corporate gifting during special occasions like festivals, anniversaries or holidays. These unique, one-time codes can be sent to employees or business partners, digitally or physically, allowing them to redeem a digital gift seamlessly. This approach ensures personalized branded experience while simplifying the distribution process.   
  • Marketing campaigns:   
    Integrate Xoxo Codes into marketing campaigns as limited-time rewards. For example, include a digital code in promotional emails or social media contests that customers can redeem for exclusive offers. This tactic not only boosts engagement but also tracks campaign performance through code usage.   

 

Xoxo points 

Xoxo Pointsare reward points with fluid denomination (Any value from 1), that can be used to distribute rewards, discounts or offers to your employees, research panels, sales, stakeholders, or channel partners.  

These points are directly linked with recipient’s email id or mobile number earned through referrals, making purchases. Some of the use cases are employee rewards, customer loyalty.   

Key features:   

  • Accumulative rewards: Users earn points over time and redeem them at their convenience.   
  • Customizable allocation: Businesses set rules for how points are distributed.   
  • Real-time tracking: Employees or customers can track their points in a personal dashboard.   
  • Multi-channel distribution: Allocate points via email, software integrations, or in-app notifications.   

Utilize Xoxo points for-   

  • Employee rewarding:   
    Implement a rewards program where employees earn Xoxo Points for achievements, meeting targets, or demonstrating exceptional performance. These points accumulate in their account and can be redeemed for a variety of rewards, fostering motivation and a positive workplace culture.   
  • Loyalty rewards:   
    Distribute Xoxo Points for channel or customer loyalty based on various criteria on sales, purchase, etc. This system motivates users with reward points based on various milestones.   

 

Xoxo Linkis a unique link that lets recipients choose the reward of their choice with a single click. Partial use is not possible with xoxo links. Some of the use cases are consumer promotion, one-time reward campaigns, survey incentives. Xoxo links can be in standard denominations like 50/100/500 etc.  

Key features:   

  • Instant access: No need for users to create an account—just click and redeem.   
    Customizable campaigns: Businesses can create unique landing pages with a curated list of rewards.   
    Automated & scalable: Send thousands of links in minutes.   
    Flexible expiry options: Set an expiration date to drive urgency.   
  • Quick distribution: Rewards can be sent instantly via multiple channels like email, Whatsapp or SMS.   
  • Personalized experience: Customize branding, messaging and reward catalogs based on campaign objectives.   

Utilize Xoxo links for-   

  • Consumer promotions:   
    Use Xoxo Links in consumer promotions tooffer a hassle-free, instant reward experience. When customers click on their personalized Xoxo Link, they’re directed to a rewards page where they can claim their gift. This streamlined process enhances the overall customer experience and drives conversions.   
  • Survey incentive:   
    Encourage survey participation by rewarding respondents with a unique Xoxo Link upon survey completion. The link provides immediate access to a digital reward, making it an effective way to increase engagement and gather valuable consumer insights while rewarding feedback.   

 

Xoxoday Plum rewards API 

Powering modern digital currency solutions for firms across use cases such as employee, consumer, channel, and other types of rewarding, our API platform helps firms automate rewards, benefits, payroll, and manage catalogs seamlessly. 

Key features of Xoxoday Plum Rewards API: 

Firms can save time, costs, and resources by using our solution. 

  • Quick go-to-market for teams. 
  • Scalable reward solutions. 
  • Top-notch customer support and technical documentation. 
  • 99.99% uptime capability. 
  • Excellent data security. 

Utilize Xoxoday Plum rewards API for-   

1. Employee rewards 

Xoxoday Plum enables you with instant incentive infrastructure to digitize and gamify rewards, commissions, and incentives for employee use cases to effectively engage employees with personalized rewards. 

Firms can leverage Xoxoday Plum to: 

  • Extend market share in the industry and keep team spirits high. 
  • Reduce employee turnover. 
  • Generate a positive ROI on every dollar invested. 

2. Consumer campaigns 

With Xoxoday Plum, you can create exciting consumer campaigns and discount coupon codes within minutes. You can also automatically share them with customers based on custom triggers and workflows. 

Firms can leverage Xoxoday Plum Rewards to: 

  • Influence consumer decision-making. 
  • Increase revenue in a short period of time. 
  • Launch consumer promotions to test out new ideas/products. 

3. Sales & channel rewarding 

Sales leaders can motivate their sales and channel partners by gamifying channel incentives with leaderboards, contests, badges, milestones, and rewards. 

Xoxoday Plum can be leveraged to: 

  • Boost sales and channel conversions. 
  • Motivate sales and channel partners to achieve their targets. 
  • Extend brand reach and foray into new markets. 

 

Conclusion 

While Amazon and other retail gift cards may seem convenient at first glance, they often fall short when it comes to flexibility, personalization, scalability, and true impact. Businesses today need more than a one-size-fits-all approach — they need rewarding experiences that are meaningful, customizable, and globally accessible. 

Xoxoday Plum empowers you to move beyond traditional retail gift cards with a smarter, more flexible reward solution. From instant Visa prepaid cards and global gift options to seamless integrations, deep personalization, and robust analytics — Xoxoday Plum makes rewarding simple, impactful, and delightfully human. 

Ready to elevate your reward programs and deliver real value to employees, customers, and partners? 

Schedule a free demo and talk to our experts today!

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