A wise man once said, “Know your business like nobody’s business.” If you’re going to do something, then do it right and make sure everyone knows you do it right. Right?

So what do you do if you’re Toys “R” Us? Toys are your business and yet you’re losing market share to Amazon – a company without even the word “toys” in their name. How can that be? That’s just the question we at Jifiti set out to solve. We’re privy to some deeply guarded secrets in the gifting industry and this one puzzled us for a while. Toys “R” Us should be the undisputed king of toys and yet Amazon has slowly and steadily grabbed control of the toy market. How did this happen? Is it something Toys “R” Us did wrong or something Amazon did right?

In toy sales, specifically on Jifiti’s platform, Amazon sales are 350% higher than Toys R Us when a physical gift is chosen. However, when users select a gift card, Toys “R” Us ranks 110% higher than Amazon.

As it turns out, the statistics aren’t quite clear. In toy sales, specifically on Jifiti’s platform, Amazon sales are 350% higher than Toys R Us when a physical gift is chosen. However, when users select a gift card, Toys “R” Us ranks 110% higher than Amazon.

So the question has shifted. It’s no longer, how has Amazon usurped Toys “R” Us’ place in the online toy industry, but rather how does Amazon lead in physical toy sales but lag in gift card sales?

To answer this question we need to get inside the mind of someone purchasing a gift for a child. I am just such a person, so I’ll start with my mind!

When I’m shopping online for a gift for a child the beginning and the end of the story is one thing: price. I want the best value for my money. Sure, I’ll pick something that’s good quality and in the genre that the kid likes but all things being equal I want to get a good buy. And when a consumer is in a thrifty frame of mind, online one store stands out from the rest: Amazon.

This is true even when it’s not true. Comparing toy by toy between Amazon and Toys “R” Us you won’t find Amazon to be any cheaper. But reality has nothing to do with consumer perception. Amazon has the best deals – period.

On the flip side, if I’m not buying an actual product but instead I’m going with a gift card then I’m in a completely different frame of mind. Am I giving the child cash? No, I’m gifting an experience. I’m not picturing him running to the computer and shopping online. I’m envisioning him dragging his parents to the toy store, just as I did at his age, running from aisle to aisle trying everything and finally settling on the perfect item. And when a consumer is in the toy experience frame of mind online one store stands out from the rest: Toys “R” Us.

When you’re gifting a child an item, you want to get more bang for your buck. When you’re gifting a child an experience, you want it to capture the best the toy world has to offer.

This is the essential point. When you’re gifting a child an item, you want to get more bang for your buck. When you’re gifting a child an experience, you want it to capture the best the toy world has to offer.

Keep this in mind when deciding on a gift for a child. Make sure you’re gifting him or her everything they expect in a gift – the product and the experience.