system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How do companies like Walgreens make money selling gift cards for things like iTunes when the cost is the same as the value of the card? Who benefits from this and doesn't the company lose money when factoring in shipping costs?
gpt
The cost to the store is not the same as the face value of the card - they make a small profit. And Apple makes money, too, even selling the card at a discount, because some percentage of card value is never used, and even if it is used, it gets people to shop there, and they may spend a few extra bucks.

And even beyond that, it makes Walgreens a desirable place to shop. People will pop in to pick up a gift card, then also buy toothpaste and some M&Ms.