Gift cards are one of the most underutilized revenue tools on Shopify. They drive immediate cash flow, introduce new customers, and often result in orders that exceed the gift card value. Here’s how to set them up.
Enable Gift Cards on Shopify
Gift cards are a built-in Shopify feature on all plans. To create one:
- Go to Products → Gift cards in Shopify Admin
- Click “Add gift card product”
- Set denominations ($25, $50, $100, $250)
- Add a design/image
- Publish as a product so customers can buy it
How Shopify Gift Cards Work
When a customer purchases a gift card:
- They receive an email with the gift card code
- The code can be redeemed at checkout by the recipient
- Unused balances are tracked per code
- Gift cards don’t expire by default (varies by jurisdiction)
Issue Gift Cards as Refunds
Instead of processing cash refunds, offer store credit as a gift card. Customers often spend more than the gift card value, and you retain the revenue in your ecosystem rather than returning it.
Gift Card Marketing Strategies
- Holiday promotions: “Buy a $100 gift card, get $10 bonus credit”
- Last-minute gifts: Market gift cards as the perfect last-minute present — they’re instant
- Corporate gifts: Target B2B customers who need employee or client gifts in bulk
- Birthday rewards: Email loyalty members a gift card on their birthday
Custom Gift Card Designs
Use a design tool like Canva or Figma to create branded gift card images for your Shopify products. Different designs for different occasions (Christmas, Birthday, Thank You) increase relevance and perceived value.
Tracking Gift Card Revenue
In Shopify Analytics, gift card sales appear as deferred revenue (not recognised until redeemed). Track:
- Gift cards sold vs redeemed (unredeemed = breakage revenue)
- Average order value when a gift card is used at checkout
- New customer acquisition through gift card redemptions
