Gift Card Shopify: Everything You Need to Know

Table of Contents

1. Introduction
2. Why Gift Cards Are Essential for Your Shopify Store
3. Setting Up Gift Cards on Shopify
4. Strategies to Maximize Gift Card Benefits
5. Handling Gift Card Reports
6. Common Questions About Shopify Gift Cards
7. Conclusion

Introduction

Imagine turning a one-time shopper into a loyal customer who eagerly awaits the release of your new products. What if there was a way to attract new customers effortlessly while boosting your cash flow? This isn't a business miracle—it's precisely what gift cards can do when incorporated into your Shopify store.

With the rise of e-commerce and ever-increasing competition, retailers need every edge they can get. Gift cards are a simple yet powerful tool that can help businesses achieve these goals. So why should you care about offering gift cards on your Shopify store? And how can you maximize their use to gain the upper hand in today's market? By the end of this blog post, you'll have all the answers. Let’s dive in!

Why Gift Cards Are Essential for Your Shopify Store

Gift cards have turned into a staple for both online and brick-and-mortar stores, offering a multi-faceted advantage for businesses.

1. Instant Cash Flow: Selling gift cards provides immediate revenue even before you part with any product. They are particularly vital during uncertain seasons where cash flow might be tight.

2. Customer Acquisition: Gift cards are essentially a gateway for new customers. Every time someone buys a gift card, you're gaining a new customer without spending on advertising.

3. Enhanced Customer Loyalty: Offering gift cards as a part of loyalty programs or as compensation for disgruntled customers can bring them back repeatedly.

4. Higher Cart Values: Customers with gift cards tend to spend more than the card’s value, leading to an increase in your average order value.

5. Reduced Returns: Gifts often don't meet the recipient's preference. But with gift cards, the receiver chooses what they want, reducing the likelihood of returns.

Setting Up Gift Cards on Shopify

Creating and selling gift cards on Shopify is straightforward. Here's a step-by-step guide to help you get started:

Step 1: Enable Gift Cards in Shopify Admin

1. Log in to your Shopify admin and navigate to Products > Gift cards.
2. Click on Create gift card. Enter the required details such as initial value, customer information, and expiration date, if any.
3. Save your gift card, and you'll be ready to manage and sell it.

Step 2: Customize Your Gift Card

You can personalize your gift card page to reflect your brand's aesthetic.

1. Go to Settings > Notifications.
2. Select the template you want to customize under “Gift cards”.
3. You can change the email body, subject, and images as needed.

Step 3: Publish Gift Card for Sale

1. To make a gift card available for sale, head back to Products > Gift cards.
2. Click Add a gift card product and complete the necessary fields.
3. Save it, and voila! Your gift card is live and ready for purchase.

Step 4: Add Denominations

Offering multiple gift card denominations can cater to varying customer budgets. You can create variants by updating the title, price, and image as necessary.

Step 5: Track Gift Card Sales

Track your gift card sales via the Gift card sales report in the Shopify admin. Keep an eye on the outstanding balance report to manage liabilities effectively.

Strategies to Maximize Gift Card Benefits

Once you have your gift cards set up, you can employ a few creative strategies to maximize their benefits.

Discounted Gift Cards for Loyal Customers

Reward your repeat customers by offering discounted gift cards. This not only fosters loyalty but also boosts immediate cash flow.

Seasonal Promotions

Seasonal promotions can be a big hit. Offer gift cards during holidays with special designs or bonuses, like a $10 credit for every $100 spent on gift cards.

Bundle with Other Products

You can add a gift card as part of a product bundle. For instance, "Buy Product X and receive a $10 gift card for your next purchase."

Social Media Contests

Run social media contests where participants can win gift cards. This not only enhances your brand presence but also attracts new customers.

Responding to Customer Complaints

Offering a gift card as an apology for a customer complaint can turn a negative experience into a positive one. This shows customers that you value their feedback and business.

Abandoned Cart Emails

Include a small-value gift card in your abandoned cart emails. This could incentivize customers to complete their purchase.

Handling Gift Card Reports

Managing and analyzing your gift card sales can offer valuable insights.

1. Sales Reports: Gift cards appear as part of your liabilities, not immediate sales. To view detailed gift card metrics, go to Analytics > Reports > Finances > Gift Cards. This report will give you a clear picture of issued, sold, and outstanding balances.

2. Gift Card Activity: Keep track of who has redeemed the gift cards and the remaining balances to gauge how successfully your gift cards are being used.

Common Questions About Shopify Gift Cards

How can I make my own gift cards for my business?

Simply enable them from your Shopify admin, customize as per your brand, and make them available for purchase.

Do businesses make money on gift cards?

Absolutely, they offer immediate cash flow and often lead to purchases exceeding the gift card value.

Do gift cards help small businesses?

Gift cards are particularly beneficial for small businesses by providing a steady cash flow and introducing new customers.

How much does it cost to make gift cards?

The cost is minimal, especially for digital gift cards, where you mainly invest time in setup and customization.

Conclusion

Gift cards bring an array of benefits to your Shopify store, from boosting cash flow to increasing customer loyalty and acquisition. By following these steps and strategies, you can effectively integrate and maximize the potential of gift cards in your business.

Don't wait any longer—implement gift cards today and watch your business flourish!

Ready to boost your Shopify store's performance with gift cards? Start your journey now and transform your business landscape.