Why Gift Cards and Store Credit Drive Shopify Revenue
Gift cards are one of the most underutilized revenue tools in Shopify’s native feature set. A well-implemented gift card program creates three distinct revenue opportunities: upfront cash flow when cards are purchased before redemption, new customer acquisition when gift recipients shop your store for the first time, and the revenue uplift that occurs when recipients spend beyond the card value — studies consistently show gift card recipients spend 20-30% more than the card’s face value. Store credit — credit issued directly to customer accounts rather than physical or digital gift cards — adds a fourth benefit: customer retention through a mechanism that keeps purchasing power within your store rather than allowing it to leave via refund.
This guide covers how to set up both systems on Shopify: native gift card implementation, store credit configuration, third-party app enhancements, and the marketing programs that turn gift cards from a passive feature into an active revenue channel.
Step 1: Enable Native Shopify Gift Cards
Shopify includes native gift card functionality on all plans. Navigate to Products → Gift Cards in your Shopify admin to get started:
- Create gift card denominations — create gift cards in common denominations matched to your product price points: $25, $50, $100, $150, $200, and custom amounts. Consider denominations slightly below and at your average order value. A store with a $65 average order value benefits from $50 and $75 denominations — the $50 card leaves a small balance that drives an additional purchase; the $75 card leaves buyers with a small shortfall that’s psychologically easy to bridge.
- Configure expiration settings — Shopify gift cards don’t expire by default. Check your jurisdiction’s gift card legislation before adding expiration dates — many US states prohibit gift card expiration or require minimum 5-year validity. Shopify’s settings allow you to enable or disable expiration and set the period if enabled.
- Enable gift card emails — when gift cards are purchased for another person, Shopify sends a branded email to the recipient. Customize the gift card email template in Settings → Notifications → Gift card created to include your brand’s design, messaging, and redemption instructions.
- Test the complete gift card purchase flow — purchase a low-value test gift card, send it to yourself, verify the email arrives correctly, and confirm the code redeems at checkout. Broken gift card email delivery is a silent problem that generates frustrated recipients during peak gifting seasons when you most need the revenue.
Step 2: Create Gift Card Products for Your Store
In Shopify, gift cards appear as purchasable products — customers buy them like any other product:
- Add gift cards to your navigation — create a “Gift Cards” link in your navigation menu pointing to your gift card product page. Gift cards are frequently purchased by buyers who don’t know what to give someone who “has everything” — visible placement helps buyers discover the option. Add “Gift Cards” to your site footer and as a prominent homepage feature during holiday seasons.
- Optimize the gift card product page — write descriptions that speak to the gift-giver’s anxiety (“give the gift of choice — let them pick exactly what they love”) and highlight convenience (“redeemable for anything in our store, shipped to any address they choose”). Add lifestyle imagery that communicates thoughtful gifting.
- Create multiple denominations as variants — list your denominations as variants so buyers select their amount from a single product page. Shopify’s gift card product structure supports this natively — each denomination generates a unique gift card code upon purchase.
- Enable personal message functionality — Shopify’s gift card purchase flow allows buyers to enter the recipient’s email and add a personal message. Customize the email template to display the personal message prominently — the personal touch transforms a digital transaction into a genuinely meaningful gift.
Step 3: Set Up Store Credit Programs
Store credit — balance credited to a customer’s account — is distinct from gift cards: it’s non-transferable, tied to a specific account, and most commonly issued as refund alternatives or loyalty rewards:
- Native Shopify store credit — Shopify’s native store credit functionality allows issuing account-level credit from the admin. Navigate to Customers → select customer → Store credit section. Enter the amount and a note explaining the reason. The credit appears in the customer’s account and applies automatically at checkout.
- Issue store credit as a refund alternative — when processing a refund, offer store credit instead of returning funds to the original payment method. Store credit refunds retain the revenue within your store rather than sending it back to the customer’s bank. Offer store credit with a small incentive: “Refund to original payment: $50” vs. “Store credit: $55 (10% bonus)” — buyers who plan to purchase again almost always choose the bonus credit option.
- Loyalty-based store credit — configure your loyalty program (LoyaltyLion, Smile.io) to issue store credit as a reward mechanism rather than discount codes. Store credit rewards feel more substantial and valuable because they appear as account balance (“you have $25 to spend”) rather than a transactional discount (“save 10%”).
- Automatic store credit triggers via Shopify Flow — use Shopify Flow to automatically issue store credit when customers reach spending milestones, complete a review, or refer a friend. Automated credit issuance removes the manual overhead from loyalty reward management and ensures consistent application.
Step 4: Market Your Gift Cards Effectively
Gift cards don’t sell themselves — proactive marketing drives gift card revenue significantly beyond organic discovery:
- Seasonal gift card campaigns — run dedicated campaigns during peak gifting seasons: holiday season (start December 1), Valentine’s Day (start January 28), Mother’s Day (start May 1), Father’s Day (start June 1). Gift card-specific email campaigns with gift-focused messaging (“the gift that lets them choose”) reach buyers actively seeking gift solutions who haven’t yet settled on a specific product.
- Post-purchase gift card promotions — a buyer who just completed a purchase is in a gifting mindset and knows your brand. A post-purchase email 24-48 hours later (“Loved your purchase? Gift a friend the same experience — buy a gift card today”) converts this engaged moment into additional gift card sales. Klaviyo flow automation makes this sequence fully automated.
- Cart-stage gift card suggestion — use ReConvert or CartHook to suggest a small-denomination gift card as an add-on for buyers purchasing gift-appropriate products. “Add a $25 gift card to complete your gift?” at the cart stage captures impulsive gifting additions from buyers already in a shopping session.
- Corporate gift card programs — businesses purchasing gift cards for employee appreciation, client gifts, or customer rewards buy in bulk at volumes individual consumers never match. Create a dedicated “Corporate Gifts” page describing your bulk gift card program with a contact form for corporate inquiries. Volume pricing (10% discount on orders of 20+ gift cards) closes corporate accounts that would otherwise use generic gift cards.
Step 5: Use Third-Party Gift Card Apps for Advanced Features
Shopify’s native gift card functionality covers the basics, but specialized apps extend capability significantly:
- Rise.ai — Comprehensive gift card and store credit platform — Rise.ai adds branded digital gift card designs, automated store credit issuance workflows, gift card reminders to recipients who haven’t used their cards, bulk gift card generation for corporate programs, and advanced analytics showing gift card purchase patterns and redemption rates. Rise.ai also enables custom gift card amounts beyond fixed denominations and integration with loyalty programs to unify credit and rewards. From $19.99/month.
- Govalo — Premium digital gifting — Govalo creates an elevated digital gift card experience with branded card imagery, recipient experience customization, and gifting analytics. Govalo’s approach positions gift cards as a premium product rather than a utilitarian feature — important for luxury and premium brands where the gifting experience must reflect the brand’s quality positioning. From $29/month.
- GiftWizard — Social gifting experience — GiftWizard adds a social gifting layer: recipients choose their own gift from your catalog using the gift card value, creating a personalized experience that solves the “wrong product” gift problem. The sender selects a value and product category; the recipient chooses their specific preferred product. Effective for fashion, home decor, and lifestyle brands where personalization matters significantly.
Step 6: Set Up Automated Gift Card Campaigns in Klaviyo
Klaviyo automation turns gift card program management from manual to systematic:
- Gift card reminder flows — trigger an automated email to gift card recipients who haven’t used their card within 30 days: “Your gift card is waiting — you have $[amount] to spend at [store name].” Include a direct link to your store. A second reminder at 60 days adds light urgency. These flows recover an estimated 10-25% of unredeemed gift card value into actual purchases — revenue that would otherwise sit as unredeemed float indefinitely.
- Partial redemption follow-up — when a gift card is partially redeemed (common — recipients use a $100 card on a $65 product), send an automated follow-up referencing the remaining balance: “You still have $35 from your gift card — here are products that fit your remaining balance perfectly.” Showing products priced near the remaining balance makes completing redemption psychologically simple.
- Gift card purchaser follow-up — follow up with purchasers 2 weeks after the card’s likely receipt date: “Did [recipient name]’s gift arrive safely? Let us know if you need anything.” This touchpoint builds purchaser relationship and opens a channel for any gift delivery issues needing resolution before they become negative reviews.
- Birthday month gift card campaigns — segment subscribers by birth month and send a gift card suggestion campaign to buyers in the month before their birthday: “Looking for a birthday gift for yourself? Your birthday gift card is waiting.” Self-gifting gift card purchases are a legitimate category — buyers who want something specific but can’t justify the full price often use a gift card as a psychological middle ground.
Shopify Gift Card Best Practices
- Make gift cards visible year-round — most stores only promote gift cards seasonally; year-round visibility captures birthday gifting, wedding gifts, and spontaneous appreciation gifts throughout the year that seasonal promotion misses entirely
- Offer premium physical gift card options — physical gift cards with premium packaging (foil card, gift box, tissue paper) command higher face values and add a tangible experience digital cards don’t provide; use Rise.ai’s physical card integration or Postco for physical printing and fulfillment
- Track gift card float for accounting — unredeemed gift card value is a liability on your books; Shopify Analytics → Gift Cards shows outstanding balance; manage float appropriately for your jurisdiction’s accounting and escheatment requirements
- Show real-time gift card balance at checkout — buyers returning to redeem gift cards need clear visibility of their remaining balance during checkout; Shopify displays this natively in checkout, but verify your theme doesn’t obscure the balance display
Frequently Asked Questions
How do I issue a refund as store credit in Shopify?
Issuing Shopify store credit refunds: in Shopify admin, go to Orders → select the order → click Refund. On the refund screen, if native store credit is enabled, you’ll see the option to refund to store credit rather than the original payment method. Alternatively, navigate to the Customers panel, select the customer profile, scroll to the Store credit section, and add credit manually with the amount and a descriptive note. Third-party apps like Rise.ai automate store credit issuance with configurable incentive amounts — automatically offering 10% bonus credit vs. cash refunds converts the majority of eligible refunds to store credit without manual offer negotiation.
Can Shopify gift cards be used for multiple purchases?
Shopify gift card multi-purchase functionality: yes, gift cards can be used across multiple purchases until the balance is fully depleted. Each transaction deducts from the remaining balance. Recipients can check remaining balance at checkout. Gift cards can also be split across payment methods — a $50 gift card applied toward an $85 purchase charges the $50 balance to the gift card and prompts the buyer to pay the remaining $35 with another payment method. This flexibility makes gift cards more practical than single-use discount codes and improves recipient satisfaction with the gift card experience significantly.
Are Shopify gift cards refundable?
Gift card refund policy: Shopify gift cards themselves are generally non-refundable — you’ve received cash and issued a liability. For products purchased with gift cards, if a purchase is returned, Shopify by default re-credits the gift card balance rather than refunding to a bank account. This is typically appropriate: the buyer used a gift card credit, not their own cash, so re-crediting the gift card maintains the original value exchange. Configure your return policy to explicitly state how gift card purchases are handled on returns — buyers may expect different treatment than standard purchases, and clarity prevents post-refund disputes.
How do gift cards affect Shopify revenue reports?
Gift cards in Shopify Analytics: gift card sales appear as revenue when purchased but are marked as liability rather than completed revenue until redeemed. Shopify’s Gift Cards analytics (Analytics → Gift Cards) shows total cards sold, total value, redemptions, redemption rate, and outstanding unredeemed balance. Shopify’s financial reports separate gift card sales from product sales for correct revenue and liability representation. From a cash flow perspective, gift card sales generate immediate cash; from a revenue recognition perspective, the revenue is “earned” only when redeemed for products — an important distinction for accurate financial reporting.
How do I promote gift cards on social media?
Gift card social media promotion: seasonal gift guides featuring your gift cards perform well on Instagram and Pinterest — create gift card imagery showing the gifting occasion (holiday table, birthday setup, anniversary celebration) alongside the digital card design. Instagram Stories and TikTok gift guide content with a “gift card link in bio” converts browsing audiences into purchasers during peak gifting seasons. Pinterest gift guide boards including your gift cards among product recommendations reach high-intent gift-searchers during Q4 and major gifting holidays. LinkedIn corporate gift campaigns targeting office managers and HR professionals reach bulk corporate gift card buyers who purchase at volumes that justify dedicated outreach.
Final Thoughts
Gift cards and store credit are among Shopify’s highest-return features because they generate upfront revenue, acquire new customers through gift recipients, and retain purchasing power within your store through credit programs. The stores that see the highest gift card revenue treat gift cards as a product category deserving the same marketing attention as their physical product lines — seasonal campaigns, dedicated pages, corporate programs, and Klaviyo automations that convert unredeemed value into completed purchases. Start with Shopify’s native gift card features, layer in store credit for refunds and loyalty rewards, and expand with Rise.ai once your gift card program is established and ready for advanced functionality.
For more on Shopify retention strategy, explore our guides on customer loyalty programs, Shopify email marketing, and reducing cart abandonment.
