How Do Shopify Gift Cards Work? A Simple Guide

If you want to promote your brand, build loyalty, and increase revenue, gift cards are a great idea. For e-commerce business owners, gift cards have a wide variety of uses. You can sell them, give them as rewards or incentives, and more.

If you’re a Shopify subscriber, you’re in luck. All Shopify subscription plans have access to the gift card feature.

So if you aren’t leveraging gift cards in your favor yet, now is the time to start doing so.

If you’re wondering, “How do Shopify gift cards work?” Then you’re in the right place. We’ve compiled a simple guide breaking down all you need to know about Shopify’s gift card feature.

Selling Gift Cards On Shopify

If you have a Shopify subscription plan, then you’re able to use gift cards. They’re particular types of products that have multiple features. There are three main uses for gift cards on Shopify:

  • To sell in your online store like any other product
  • Sharing links on social media to gift card products
  • Issuing gift cards to customers as free rewards or incentives for affiliates

As you can see, there are a few different ways you can use gift cards on Shopify. The first and most obvious is to sell them as products.

Gift cards are wildly popular gift choices for younger generations. Rather than selecting an item that a loved one doesn’t like, a gift card instead puts the power in customers’ hands. That way, they can pick out a product from your store that they know they’ll enjoy.

A gift card also eliminates the possibility of giving someone something they already have. They also save the consumer a lot of time when shopping. Putting $100 on a gift card is a quick and easy way to get your gift shopping done in a few minutes.

For these reasons, it’s wise to sell gift cards in your Shopify store.

Doing so will give your customers extra options when shopping. If they like your products, they may pick up a gift card for their friend or loved one.

Using Gift Cards as Rewards/Incentives

Another way you can use gift cards on Shopify is to reward your customers. Let’s say that an unhappy customer had a shipping issue that delayed their package. You don’t want to lose their business, so offering a gift card as a reward is a great idea.

You can use it as a way to sincerely apologize to the customer while giving them something of value. Reassure them that their next purchase won’t have the same issue, and provide them with a gift card to prove it.

That’s a great technique to use in order to retain customers that had bad experiences.

We’re all human, and problems are inevitable sometimes. Having gift cards enabled on Shopify gives you a secret weapon to use in cases such as these. Of course, you should strive not to experience any issues. Yet, should one pop up, having a gift card to offer is a great way to make peace.

If you have an affiliate program for your store, you can use gift cards as incentives.

An example would be offering a $100 gift card for anyone able to get three new users to register within a month. That’s a great way to light a fire underneath your affiliates. A sizable gift card can provide the motivation they need to get out there and promote your business.

Sharing Gift Card Links On Social Media

Another use for gift cards on Shopify is to show them off on social media. You can provide links to your most attractive products while promoting your new gift cards. Be sure to mention any affiliate or reward programs as well.

That is a clever marketing tactic that won’t cost you a dime. Customers love to hear about gift cards and reward programs, and they’ll learn about your business.

Play up the angle that your gift cards make perfect presents for loved ones. With them, customers can ensure their recipients get to pick out precisely what they want. So when promoting your business, don’t forget to mention your gift cards on social media.

Adding and Updating Gift Card Products in Shopify

Now it’s time to answer the question, “How do Shopify gift cards work?” Like other features on the platform, gift cards are pretty straightforward.

As stated before, all Shopify subscription plans have access to the gift card feature. For everything related to gift cards, head to your Shopify admin’s ‘Gift Cards’ page.

Activating Gift Cards

Before you can start using gift cards, you need to activate the feature. Here’s what you need to do to activate it:

  • From the Shopify admin, select Products > Gift Cards.
  • Select Add Gift Card Product.

From there, a gift card will automatically generate for you. It’s a draft gift card by default, so you’ll need to add some original tweaks to use it.

Adding a New Gift Card

Now that the feature is activated, it’s time to start adding custom gift cards. Here are the steps you’ll need to take:

  • Go to Products > Gift Cards.
  • Select Gift Card Products.
  • To add a new gift card, select Add a Gift Card Product.
  • To update an existing gift card product, click on its name in the list. If you don’t have any gift cards yet, you won’t see any names.
  • Begin entering the information for the gift card.
  • Title: Enter a unique name for the gift card product.
  • Description: Write a product description for the gift card that will appear in your store.
  • Media: Here, you can upload an image for your gift card if you have one. It will show up on the product page of your store.
  • Denominations: You’ll find several default denominations for each gift card product. You can also add your own denominations. Each variant will automatically save for your convenience.
  • Search engine listing preview: You’ll be able to see a preview of how your gift card will show up in search results.
  • Sales channels and apps: Here, you’ll need to select which sales channels you want to sell your gift cards through online. You’ll get the chance to view the availability settings during this step as well. If you’re going to publish your gift card on a specific date, you can click the calendar icon beside Online Store.
  • Organization: This is if you want to add optional information about the vendor and product type. You can also add your gift card to existing manual collections and add tags.
  • Once you’re done, hit Save.

Voila, that’s all it takes to set up a gift card on Shopify. Remember, you’ll need to publish your gift card to sell it in your store. Otherwise, the gift card will stay hidden from your sales channels. Make sure that you make your gift card available to at least one of your sales channels.

Doing so will publish it so that you can sell it to your customers. You can also use the calendar icon to publish your gift card on a specific date. That comes in handy if you plan on running promotions that coordinate with specific dates or seasons.

Top Benefits of Using Gift Cards On Shopify

All right, now that you know how to set up gift cards on Shopify, why should you bother? Will selling gift cards make a difference to your bottom line?

The answer is definitely yes, and there are other benefits that you’ll enjoy from gift cards as well. Here are the top perks you’ll gain from adding gift cards to your Shopify store.

Increasing Sales and Revenue

It’s a fact that e-commerce gift cards are notorious sales boosters. Why is that? It’s because gift cards are the most requested present during the holidays.

As stated before, gift cards are so prevalent because they’re time-saving and convenient. Buying a gift card is the easiest way to alleviate the pressure of searching for a gift.

Like anything else, quick and easy will always win. Gift cards are like the fast-food version of holiday shopping.

Last-minute shoppers adore gift cards, for example. Often, last-minute shoppers have to select something from near-empty shelves. Gift cards allow them to save face by giving a present that won’t upset their loved one.

The revenue boost doesn’t end there, though. Even when it’s not the holiday season, gift cards are still big sellers. Birthdays happen all year round, as do anniversaries and parties.

Not only that, but gift card users often opt for more expensive products. In other words, they’ll spend more than they would have if they didn’t have a gift card.

That’s because you can use the money on a gift card as an effective discount for higher ticket items.

So incorporating gift cards in your online store can help you move more expensive items. If you’ve noticed that your high ticket items are accumulating dust on the shelves, gift cards can be the remedy you need to get them moving.

Boost Your Brand Awareness

Gift cards can also give your brand awareness a much-needed boost. It’s highly likely that the recipient of your gift card hasn’t heard of your brand before.

Now they can try out your products for free and see if your brand fits their needs. That’s a fantastic way to gain new customers.

Moreover, if they take to your brand, they’ll probably buy a gift card for one of their loved ones. That can trigger a cycle of new customers that all discover you through gift cards.

Make sure to include your branded image on your gift cards. That will further boost your brand awareness. Not only that, but digital gift cards have a distinct advantage here. Thanks to Shopify’s gift card feature, you can instantly send them to any part of the world.

If you’re unhappy with your current level of brand awareness, it’s time to give gift cards a try. They may give you the boost you need to get your brand in the eyes of the public.

Gift Cards are Convenient, Safe, and Secure

Customers lose physical gift cards all the time. Sadly, once the gift card is gone, it’s gone for good. The same can’t be said for the digital gift cards you can use on Shopify. Sending a digital gift card is effortless and secure. The amount will always stay the same, too.

Shopify has excellent security, which is another plus. As such, your gift cards are guaranteed safe and secure. That’s a benefit for customers as well.

Gift cards aren’t only convenient for customers, either. As a merchant, managing your gift cards is a total breeze. They offer a fast and convenient way to sell your products to customers around the world.

Improve Customer Loyalty

Gift cards can work wonders for your customer loyalty. As stated before, gift cards can help you attract new customers. Once they find value in your products, they will keep coming back. That alone is a great way to build customer loyalty.

Also, gift cards are your secret weapon for returns and refunds. Granting an unhappy customer a $15 gift card for a return can help you retain their business. If you want to inspire loyalty among your customers, you need to activate the gift card feature in Shopify. There’s nothing to lose and everything to gain from it.

Concluding Thoughts

So that’s our guide for “How do Shopify gift cards work?” All Shopify subscriptions have access to the gift card feature. Gift cards cost nothing to start using, and they offer a myriad of unique benefits.

You can use them to make up for a lousy experience, boost brand awareness, find new customers, and more. Not only that, but gift cards are the #1 present that’s in demand the most during the holiday season. So if you’ve hit a snag with your Shopify store, try enabling the gift cards feature. It can boost revenue, awareness, and loyalty so that you can take your business to the next level. Let us know what you think of Shopify’s gift card features in the comments down below. If you would be interested in how to increase your Shopify conversion rate check out this article here.

For more great content to help you develop your Shopify strategies, check out the rest of the merchant posts on the site. If you want to see a list of our top recommended Shopify apps visit this link here.

Davon Wilson

I'm a certified Shopify expert, you can usually find me on my computer coding, or thinking about business ideas. I'm an avid Ravens fan and an overall nice guy.

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