What is Gift Card?
Gift cards are prepaid digital or physical cards that customers can purchase and redeem for store credit.
Explanation
A gift card is a preloaded payment card that allows customers to buy products or services from a store up to the value on the card. They can be digital or physical and are often used as gifts. In Shopify, merchants can create, sell, and manage gift cards for their stores, providing customers with the ability to purchase items for themselves or as presents.
Importance
- Increased Sales: Gift cards can drive additional revenue and attract new customers.
- Customer Loyalty: Encourages repeat business from recipients and gift card holders.
- Convenience: Offers a flexible, quick shopping solution for customers.
- Improved Cash Flow: Businesses receive payment upfront for future purchases.
How It Works
- Creation: Merchants create gift cards with a specific value to sell in their store.
- Purchase: Customers buy gift cards, either as a gift or for personal use.
- Redemption: The recipient uses the gift card during checkout by entering the card code.
- Balance Management: The card balance is deducted based on the purchase amount until the balance reaches zero or the card expires.
Benefits
- Boosts Sales: Encourages customers to spend more than the card's value, increasing the average order value.
- Attracts New Customers: Gift cards are often gifted to people who may not have shopped at the store before.
- Simplifies Gifting: Makes it easier for customers to give a flexible gift.
- Store Credit Management: Enables seamless redemption of store credit, allowing businesses to track and manage gift card usage.
Top Gift Card Apps for Shopify:
Gift Card Hero • All‑in‑one
- An app that helps you customize, sell, and manage gift cards on your Shopify store. You can send digital gift cards and track redemptions.
Giftnote Gift Messages & Cards
- An app that lets you create personalized, branded digital gift cards to send to your customers, enhancing the gifting experience.
GV: Gift Cards Loyalty Rewards
- This app allows you to offer digital gift cards and also includes features for managing loyalty programs, enhancing customer retention.