Should I Give Free Gifts as a Reseller?

The word “free” is deeply ingrained in our minds to signal of a reward or a token. In reselling, giving out items for free benefits the business in some ways. 

But should you give out gifts with every order? What kind of gifts should you give? Who shoulders the additional shipping fee? What if a buyer refuses the gift?

While it’s a good way to keep regular buyers loyal and attract new ones, it’s not always sustainable and preferred. Let’s shed some light  on this free gift practice in reselling.

How gifts make buyers tick

Getting a free gift is seen as a win because buyers get an item without perceiving it as a financial risk. If they receive something, it’s fine; if they don't, nothing is lost. It also makes the transaction memorable (remember the time you got a freebie from Depop? You’re more likely to remember the seller who gave it to you).

Aside from making a memorable buy, it sparks positive feelings towards the seller and could influence them to continue purchasing more items. The seller seems to be more approachable and thoughtful when they give freebies.

Why resellers give free gifts

We tapped our favorite reseller friend, Pam, on why she gives away items for free.“There are flawed items that need cleaning and repairing, but I don’t have the time to fix them, so I give them as freebies,” she shares.“I always tell them the flaw too, and I also include tips on how to fix it.” 

She, like other resellers, also have to deal with deadstock. “There are items which are slow to sell. If they have been listed for months, relisted, and yet stay unsold, I change the listing into a zero-dollar checkout in Facebook Marketplace.” She adds that, more often, she includes freebies as thank-you gifts to her buyers. 

Looking at Pam’s reasons, giving gifts does make sense for resellers. It saves time and energy on fixing flawed inventory, helps clear the death pile, and enhances the customer service experience.  “An item may stay with me for months or years being unused. But when I give them away, chances are the buyers find something useful for them”, Pam says.

Just because these gifts are free doesn’t mean they are of low value. Some resellers give a relatively pricey gift to a certain buyer because they have a large order or order frequently. Cliché  as it seems, it’s the thought that counts here.

The caveat of free gifts

But free gifts are not always advantageous. Not all buyers want them. Case in point: one Redditor’s honest take is that big gifts can feel like sellers are “dumping their junk” on them. Giving gifts may come from good  intentions, but what is adorable for the seller may come across as tacky for the buyer.

Free gifts are only truly free if they don’t add to the buyer shipping costs. They can also result in higher shipping fees, especially if they don’t fit the order’s mailer or box. If you happen to have a free gift, ask the buyer first if they are interested in receiving one.

Also, when giving free gifts along with orders, always disclose the condition. “I always tell them what needs fixing. There are buyers who complain about the quality of the freebies, so I make sure they understand what they’re getting,” Pam adds. Its sound practice; buyers are less likely to feel disappointed when they see defects on gifts.

Other seasoned resellers also advise against giving a gift for every order.It should be a bonus, not the norm. Even death piles or deadstock items cost money to acquire in the first place. Plus, it kind of becomes an expectation for buyers if you include them with every order. Don’t give your inventory away by including a free gift for every purchase. 

Pam again shares how she makes sure buyers want the gift she’s offering. “During my live selling sessions, I display the item, show all of its angles, and ask who among my viewers wants it”. She adds that although she gives away items with flaws, she avoids totally unusable items. “It can make you look negative in front of the buyers”, she says.

What to remember when giving free gifts

Confused whether to give free gifts or skip it? It depends on the context, but here’s a few rules that could help you decide with your freebies.

• Purposeful giving. What’s the reason for the giveaway? Whatever it is, it's best if the gift still holds value for the customer—something they can actually use, not just another thing to donate or, worse, throw into the trash. 
• Honesty counts. We can’t stress this enough: state the condition of the item.
• Protect your  margins. Giving items away eats at your capital and profits. Do giveaways periodically instead of regularly.
• Let the focus stay on the order rather than the gift. It should make the transaction more enjoyable, rather than the main reason to buy. 

The bottom line

Free gifts can be a way to engage buyers, but not an obligation. They only help the buyer-seller relationship if they are useful to the buyer rather than additional junk for them to deal with.

You don’t have to include free gifts for every order. Instead, consider the kind of gift, its value, and the context before giving one away. Your gift should benefit you and the buyer; they get something useful, and you build goodwill.