Link wrapping is the practice of replacing an original URL with a tracking URL that "wraps" around it. When a user clicks the wrapped link, an intermediary server records the click, optionally injects parameters such as affiliate IDs, and then redirects the user to the original destination.
Email marketing is the most common context. Email service providers like Mailchimp and SendGrid automatically replace every link in an email body with a tracking URL. When a recipient clicks, the tracking server logs the event and then forwards the user to the intended page.
A URL shortening service is, at its core, a form of link wrapping. It wraps a long URL inside a short one, recording access data at redirect time. In affiliate marketing, a product page URL is first tagged with an affiliate ID and then wrapped in a short URL, keeping the link tidy while preserving revenue tracking.
One important consideration is compatibility with email security filters. Because the wrapped URL hides the original domain, recipients or security software may flag it as suspicious. Using a reputable wrapping domain and properly configuring SPF, DKIM, and DMARC mitigates this risk.
From an SEO standpoint, whether the wrapping redirect uses 301 (permanent) or 302 (temporary) matters. Affiliate link wrapping typically uses 302, while links intended to pass SEO value should use 301. You can find related books on Amazon.