BW Online | December 1, 2000 | The Cyber Gift of Last Resort

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DECEMBER 1, 2000

CLICKS & MISSES
By Gary Gately

The Cyber Gift of Last Resort
Here's how three of the best-known online gift certificate sites stack up

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'Tis the season for angst and guilt among the shopping-impaired. Maybe you can't stand mega-malls or big-box retailers. Maybe crammed parking lots make you nervous. You've had your fill of crazed shoppers lining up for early-bird specials -- and you have no clue what to get that fickle aunt who has everything. The Web offers new variations on the gift certificate, the traditional gift of last resort, that can make it a little more flexible and a little more versatile for the person who's getting it. But the best things about certificates for givers are still: no traffic jams, no parking lots, no lines, and no risk of picking a dud that makes the recipient endure the same ordeal while trying to return your mistake amid the post-Christmas rush.

With e-commerce now mainstream, several Web sites have cropped up to offer gift certificates online. And being a reluctant shopper (who hopes to actually avoid the stores this Christmas Eve), I decided to surf and shop three of the better-known sites: Flooz.com, GiftCertificates.com, and WebCertificates.com. Beyond the basic premise -- letting customers buy gift certificates online using major credit cards -- the three sites differ in key respects.

Of the three, Flooz.com emerges the clear winner for ease of use and simplicity, and my choice for cyber gift certificates. You really can finish your virtual shopping in a few minutes -- and give the gift recipient plenty of choices. Among the three sites, only Flooz.com is purely virtual. You purchase the gift certificate online, where you decide when it's sent (as an e-mail message, along with a classy e-card you choose). Then the recipient spends "Flooz" on the Web at any of more than 60 reputable merchants.

IMPRESSIVE SELECTION. Think of Flooz as e-dollars good anywhere in a virtual marketplace full of top names in categories like clothing, books, music, sporting goods, electronics, toys, flowers, and chocolates. The e-tailers include the likes of Ashford, J. Crew, Godiva, Martha Stewart, Barnes & Noble, Tower Records, and Fogdog Sports. For those who get Flooz, redeeming it is as easy as going to the online store of their choice, picking what they want, and clicking to buy. And buyers pay no service charge or fees.

Giftcertificates.com is a little trickier for first-time users: Because it offers more options, figuring them out can be time-consuming, which is why Flooz is my top pick. But Giftcertificates has virtues of its own. The site lets you buy an online gift certificate -- e-mailed to the recipient -- or a traditional paper one that's sent through the mail. For traditional certificates, you select a retailer or business from among more than 500 stores that have partnered with the New York-based site, which recently postponed a planned initial public offering. Then you purchase the gift certificate online and have it sent by snail mail to the recipient (except for about 45 merchants who accept electronic certificates from this site). That certificate can only be used at one store.

Or, you can buy a "SuperCertificate," which also can be e-mailed or snail-mailed. The SuperCertificate lets the recipient decide where to spend, by going to the Giftcertificates.com site, picking a business, and having the store's gift certificate mailed to him or her. Giftcertificates offers an impressive selection, including Brooks Brothers, Gap, Crate & Barrel, Domestications, Neiman Marcus, and Imaginarium. Unlike Flooz, which is accepted mainly by retailers, Giftcertificates.com also includes entertainment and travel options like dining, movie, airline, and hotel gift certificates. And there's an incentive for gift certificate buyers: For every $20 worth of gift certificates you purchase, you earn one "reward point," and when you get 25, you can redeem them for a $25 gift certificate.

FINE PRINT. Giftcertificates.com will include a simple plain parchment card free with mailed gift certificates and a basic greeting with e-mailed certificates. With the snail-mailed certificates, you can add a greeting card for $2.50 or gift boxes that go for $6.95 or $14.95. That seems a bit excessive for packaging a gift certificate, especially when Flooz includes attractive cyber-cards free.

Another competitor in the fledgling online gift-certificate market, Webcertificate.com, looks good at first click. These strictly online gift certificates, sent instantly by e-mail, can be used wherever MasterCard is accepted. That means more than 1 million merchants, the company says. But the fine print sent me scurrying to other gift-certificate sites: For each WebCertificate you buy, you have to pay a service fee: $2.95 for purchases from $20 (the minimum allowed) to $49; $3.95 for purchases from $50 to $99; and $4.95 for purchase from $100 to $200. Though the gift selection is undoubtedly greater, the other two sites offer plenty of choice, without the extra fee.

Of course, those who spend gift certificates online still have to pay the merchant's shipping fee, which can be steep. So I add a few Flooz bucks to cover it, then relax by the tree Christmas Eve, knowing my shopping's done. And to those who like malls about as much as I do, may you enjoy dashing through the (cyber) stores and spending your Flooz.