How Do Shopify Gift Cards Work? (with video)

Can You Sell Gift Cards on the Shopify Platform? In a word...yes!

WHAT SHOPIFY PLANS INCLUDE GIFT CARDS?

Gift Cards are included in the Shopify and Advanced plans at no additional cost. And, due to the global pandemic, Shopify says:

"To help you reduce the impact of recent events on your store, gift cards are temporarily available to sell on all Shopify subscription plans."

So, right now, Gift Cards are also available on the Basic Plan. Shopify further says:

"There is currently no end date set, but you will be given at least 30 days' notice before the gift card feature is removed from your plan."

So, is it a good thing to sell Gift Cards on Shopify? Let’s dive into pros and cons so you can make the best decision for your business.

SHOPIFY GIFT CARDS: PROS

→ SALES. Gift Card can increase your sales and gives customers another way to shop in your store.

→ BRAND AWARENESS. When a recipient receives your Gift Card, it exposes them to your brand and gives you the opportunity to make a loyal fan out of them too. You also have the opportunity to engage them further with e-mail marketing if they opt to sign up.

→ CONVENIENCE. Online Gift Cards are fast and easy to give. It’s ideal for holidays and special occasions, and for those times when you have absolutely no idea what to give! (yep, we’ve been there too!)

→ CUSTOMER SERVICE. Your customers can give a gift that’s always the right size, color etc. It helps your customer and minimizes your returns. Win-win.

→ CASH FLOW. You collect payment for the Gift Card at the time it’s purchased, so this can potentially help with the cash flow of your business.

→ SUSTAINABILITY. Gift Cards are delivered electronically, thereby eliminating the waste associated with plastic cards, boxes, tissues paper, etc.

SHOPIFY GIFT CARDS: CONS

There are really no cons to selling Gift Cards, but it’s important to note the following:

You’ll need to provide the value at a later date, so take that into consideration from a product or accounting standpoint.

There may be a left-over balance for the customer, so you may get inquires about how to handle this.

Typically, Gift Cards are valid for five years, but you’ll need to do a little research to determine the particular rules of your state with respect to expiration.

HOW DO YOU SET UP GIFT CARDS IN SHOPIFY?

Gift Cards are set up just like a product. Click here to view the Shopify step-by-step tutorial.

HOW CAN YOU USE SHOPIFY GIFT CARDS?

Gift Cards can be used in a variety of ways:

→ Sell Gift Cards on your Shopify site

→ Share a link on social media platforms like Instagram and TikTok

→ Use them as customers incentives

→ Use them for Giveaways or other marketing promotions

HOW DOES A CUSTOMER REDEEM A GIFT CARD?

When you fulfill a gift card order, your customer will receive a unique code via e-mail. They will enter this code at checkout . If there is a balance owed, they can pay by the existing methods you’ve chosen. If there is a balance remaining, they can use the remaining balance towards another sale.

HOW TO CHECK A SHOPIFY GIFT CARD BALANCE

You can check a gift card balance by clicking on the gift card link. It will tell you the remaining balance, order number and expiration date.

We hope we’ve answered all your questions regarding Gift Cards! If you have others, please reach out to us !

Are you a new store owner?  Check out this blog:

15 Tips for New Shopify Store Owners: The Ultimate Guide !

Why do we use Shopify? Find out here:

15 Reasons to Use Shopify for e-Commerce in 2022