How do Shopify Gift Cards Work: A Complete Guide

As a Shopify store owner myself, I found that understanding how Shopify Gift Cards work has significantly improved my business strategy.

This complete guide will walk you through the intricacies of Shopify Gift Cards, from their initial setup and management to leveraging their full potential for increasing customer loyalty and revenue.

Whether you're new to Shopify or, like me, looking to optimize your use of gift cards, this guide provides all the necessary insights and practical tips to effectively incorporate gift cards into your store's offerings.

What Are Shopify Gift Cards?

Shopify gift cards are prepaid cards that customers can purchase and redeem on your Shopify store. They function as a convenient and versatile gifting option, allowing recipients to choose and purchase products from your store at their convenience. 

These digital gift cards can be customized with various designs and denominations, making them an ideal solution for birthdays, holidays, or special occasions. 

With Shopify gift cards, you can attract new customers, drive sales, and enhance customer loyalty by offering a flexible and personalized shopping experience.

How a Shopify gift card works

Think of Shopify gift cards like any other product in your store. Customers can buy them and give them as gifts to friends. It is pretty much the same as Amazon gift cards or Google Play gift cards of some sort.

When the recipient adds items to their cart and checks out, they can use the gift card to pay for the selected product.

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How to Add A Shopify Gift Card Product

Gift cards improve cash flow, attract new customers, and retain existing ones. They are easy to create and available on all Shopify plans without special apps or costs. 

Here's how to create a gift card on Shopify:

Step 1: Log in to your Shopify admin, click "Products", then select "Gift Cards."

Step 2: You will see two options:

• Create gift cards: Send cards directly to your customers via email or other means.
• Add a gift card product: Create a gift card product to sell on your online store.

For this tutorial, select "Add gift card product".

Step 3: Provide the necessary information for your gift card. To help customers find them, add gift cards to the collection. You can also add an image or design to make your gift card unique.

Step 4: Scroll down to add the denomination for your gift card.

Step 5: Organize your gift cards for better tracking later. Adjust settings on the right side of the screen.

Step 6: Once done, click "Save gift card product" and it will be available in your store.

Now that you have enabled the gift card feature, you can easily adjust the settings by going to "Gift Cards" and selecting "View gift card products".

How to Create Shopify A Gift Card Code

When you create a gift card on Shopify, you generate a unique gift card code and email it to a customer without requiring any payment. 

Here are the steps:

Step 1: From your Shopify admin, navigate to Products > Gift Cards > Create Gift Card.

Step 2: In the "Issue gift card" dialog, adjust the following sections:

• Gift card code: Use the automatically generated code or create your own.
• Initial value: Set the amount of the gift card.
• Customer: Enter the recipient's name or email.
• Expiration date: Optionally set an expiry date.
• Notes: Add any additional notes (optional).

Step 3: After adding the details, click "Preview Email" to see how it appears from the customer's perspective.

Step 4: Review the email preview and click "Save" if you're satisfied.

Upon saving, the Shopify gift card code will be generated.

You can then choose to send the gift card to your selected customer.

The recipient will receive an email containing the unique Shopify gift card code, which they can use at checkout to redeem its value.

How to Manage Your Shopify Gift Cards

To manage your Shopify gift cards effectively, follow these steps:

Step 1: Access Shopify Gift Card Sales Information

• Navigate to the "Orders" section in your Shopify admin dashboard.
• Here, you'll find a list of all orders, including those for gift cards.

Step 2: Understand the Gift Card Sales Report

• Go to "Reports" and filter by the "Finances" category.
• Click on "Gift card sales" to access the report.
• This report provides details such as the date of sale, order number, customer name, gift card value, applied discounts, and total sales.

Step 3: Review the Shopify Gift Cards Balance Report

• Similar to accessing the Gift Card Sales Report, go to "Reports" and filter by "Finances."
• Click on "Gift card balance" to access the report.
• This report offers a comprehensive overview of daily gift card balances, including opening balance, issued value, sold value, disabled value, redeemed value, refunded value, adjustment value (for Shopify Plus users), closing balance, and net change.

Step 4: Manage Active Shopify Gift Cards

• To view all active gift cards, navigate to "Products" and select "Gift cards."
• Here, you can see details for each gift card, including customer information, current balance, and purchase date.

Regularly review these reports and monitor gift card balances to stay informed about your gift card program's performance. These insights will help you optimize your gift card strategy and enhance your store's overall performance.

Gift Card Apps On Shopify

Rise.ai

• Features: Store credit, loyalty programs, referral programs, automated workflows.
• Benefits: Comprehensive solution for managing gift cards, offers various promotional tools like bonus cards and loyalty points.
• Pricing: Free plan available, premium plans start at $19.99/month.

Gift Card Hero

• Features: Customizable gift cards, digital delivery, scheduled delivery, personalized messages.
• Benefits: User-friendly interface, easy to set up, enhances customer experience with personalized and scheduled deliveries.
• Pricing: Plans start at $9.99/month.

Gift Reggie

• Features: Customizable gift cards, registry integration, detailed reporting.
• Benefits: Integrates with gift registries, offers detailed reporting and analytics, and customizable templates.
• Pricing: Plans start at $19/month.

Gift Card Pro

• Features: Physical and digital gift cards, customizable designs, automated email delivery.
• Benefits: Supports both physical and digital cards, and offers a wide range of customization options for branding.
• Pricing: Plans start at $9.99/month.

Shopkeeper Gift Cards

• Features: Easy setup, multiple delivery options, and integration with major email marketing platforms.

• Benefits: Simple to use, integrates well with other marketing tools, supports various delivery methods.

• Pricing: Free plan available, premium plans start at $14.99/month.

These apps offer a variety of features and price points to suit different business needs. Whether you're looking to enhance customer experience with personalized gift cards, track gift card usage, or integrate with your existing marketing tools, there's an app on Shopify to meet your requirements.

Tips for Promoting and Marketing Your Shopify Gift Cards

Now that you know how to create and manage Shopify gift cards, here are tips to promote them:

1. Display on Storefront: Show gift card options prominently on your storefront, main menu, homepage, or product pages.
2. Create Campaigns: Launch special promotions or campaigns. Offer discounts or bonus gift cards for larger purchases and consider seasonal themes.
3. Use Email and Social Media: Promote gift cards through email marketing and social media. Highlight their benefits like convenience and flexibility.

For more Shopify tutorial, check out these articles:

• How to fulfill orders on Shopify: Detailed instructions

• How to Add Stripe to Shopify: A Detail Guide

• How to Cancel, Pause, or Delete a Shopify Store